Market News
- Wall Street’s slide deepened on Monday as the rapidly spreading coronavirus forced more U.S. states into lock down, overshadowing unprecedented moves by the Fed to shore up credit across the economy.
- Fed’s unparalleled steps to directly backstop the U.S. economy and its willingness to purchase vast sums of U.S. government debt, mortgage-backed securities and even corporate bonds could help boost depleted liquidity in the $17-trillion Treasury market.
- The Fed “soon” will roll out a program to get credit to small and medium-sized business as it intervenes beyond the financial markets.
Market Views
- Asian stocks rallied on Tuesday morning as the Fed’s sweeping pledge to spend whatever it took to stabilize the financial system eased debt market pressures, even if it could not offset the immediate economic hit of the coronavirus. Nikkei 225 index jumped 1138 points and Hang Seng index rose 848 points.
- Trump signed an executive order on Monday to prevent hoarding and price gouging of crucial medical supplies needed to fight the deadly coronavirus.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 19,228
Target price:
Protective stop:
Outlook
This index continued its decline to a low at 18,172 last night, violating its previous low of 18,897. Price appears to rebound today and we would like to see a move above 19,785 to halt the decline. If last night’s low is broken, we are likely to see further downside to 16,760. Stochastic is deep into the oversold region but is still weak at the moment. MACD is still bearish but the histogram could be forming a divergence
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 22,503
Target price:
Protective stop:
Outlook
We have seen this index continued its decline to a low at 21,006 on Thursday, forming a Hammer candlestick pattern. As long as this Hammer’s low at 21,006 is not violated, we could see a technical rebound to test 23,170 again. A break of the Hammer’s low will bring this index lower to 20,690. Stochastic is in the oversold region and could be turning up. MACD is still bearish but the fast line is moving higher.
Trading Idea
Sell 23,150 for 21,700 with stop above 24,150
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 7217
Target price :
Protective stop:
Outlook
This index formed a spinning top reversal pattern last night and we had seen a price gap up today. As long as the low at 6633 holds, we are likely to see a rebound towards 7650. Below 6633, the next support lies at 6495, which is the Fibonacci 200% projection level. Stochastic has a divergence warning but is still weak at the moment. MACD is bearish but the fast line is moving higher and just had a bullish crossover.
Trading Idea
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Trend :
Recommendation :
Last : 2303
Target price:
Protective stop :
Outlook
Price gapped down and formed a low at 2184 last night, enfolding in a Doji candlestick pattern. A gap up was seen today and we would like to see price closing last night’s gap for a rebound towards 2510. The next support lies at 1974. Stochastic is at the oversold region and is still weak at the moment but Stochastic is starting to show divergence. MACD is still bearish but the histogram could be forming divergence
Trading Idea
Wait for better trading idea
