CFD Indices – Dow Made History Last Night

Market News

  • The Dow soared more than 2,100 points on Tuesday, notching its biggest one-day percentage gain since 1933 and its best point increase ever after U.S. lawmakers said they were close to a deal for an economic rescue package in response to the coronavirus outbreak, injecting optimism following the biggest selloff since the financial crisis.
  • Trump pressed his case on Tuesday for a re-opening of the U.S. economy by mid-April despite a surge in coronavirus cases, downplaying the pandemic as he did in its early stages by comparing it to the seasonal flu.
  • Investors were also pleased after Trump said on Monday that he was considering how to restart parts of business life when a 15-day shutdown ends next week, even as the highly contagious virus spreads rapidly and poorly equipped hospitals struggle with a wave of deadly cases.

Market Views

  • Asian shares extended their rally on Wednesday morning in the wake of Wall Street’s big gains as U.S. Congress appeared closer to passing a $2 trillion stimulus package to curb the coronavirus pandemic’s economic toll. Nikkei 225 index jumped 1,036 points and Hang Seng index rose 536 points.
  • Business activity collapsed from Australia, Japan and Western Europe to the United States at a record pace in March as measures to contain the coronavirus pandemic hammer the world economy, cementing economists’ views of a deep global recession.

Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 20,587
Target price:
Protective stop:

Outlook
Last night this index had a strong rebound from the low of 18,172. Price could move higher if it can break above the price resistance at 21,460. The next resistance lies at 22,530, which is also near to the falling 20EMA. If price is unable to move above 21,460, we are likely to see 18,172 again. Stochastic is deep into the oversold region but is still weak at the moment. MACD is still bearish. MACD just had a bullish crossover.

Trading Idea
Wait for better trading idea


Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation : Short
Last : 23,123
Target price: 21,700
Protective stop: 24,150

Outlook
We have seen a rebound from the 21,006 low following a Hammer candlestick pattern. The index has reached a high of 23,525. The next resistance lies at 23,983. If price is unable to move above 23,575, we are likely to see a test of 21,006 again. Stochastic is in the oversold region but is 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 was filled on 25 Mar 2020.

Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 7433
Target price :
Protective stop:

Outlook
This index formed a spinning top reversal pattern two nights ago and we had seen a price rally to a high of 7642 this morning. As long as the low at 6633 holds, we are likely to see a rebound towards 7820. 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 just had a bullish crossover.

Trading Idea
Wait for better trading idea


S&P 500 Index
(CFD Symbol: US500)
Trend :
Recommendation :
Last : 2413
Target price:
Protective stop :

Outlook
Price gapped down and formed a low at 2184 two nights ago, enfolding in a Doji candlestick pattern. A price rebound was seen last night and we are likely to see price moving towards 2645. 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 just had a bullish crossover.

Trading Idea
Wait for better trading idea


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