- Stocks in Wall Street continued to dive more than 4% on Wednesday after Trump’s dire warning on the U.S. death toll from the coronavirus sent investors running from even the most defensive equities.
- U.S. manufacturing activity contracted less than expected in March while new orders received to factories fell to an 11-year low. The business closures pushed private payrolls down by 27,000 jobs last month, the first decline since September 2017.
- Trump also said overnight that he is considering a plan to halt flights to coronavirus hot zones in U.S., which would hammer an already reeling airline industry and add to an overall slowdown that will curb corporate earnings.
- Asian equities fell for a second session on Thursday morning, after a dire warning about the U.S. coronavirus death toll had investors looking to the safety of dollars and bonds and bracing for more bad news from U.S. jobless figures. Nikkei 225 index declined 154 points and Hang Seng index fell 81 points.
- Trump mentioned that he had talked recently with the leaders of both Russia and Saudi Arabia and believed the two countries would make a deal to end their price war within a “few days” – lowering production and bringing prices back up.
Dow Jones Index
(CFD Symbol: US30)
Last : 21,187
The rebound from the low was capped at the falling 20EMA, which is also the Fibonacci 38% of the correction point at 22,655. Price will need to move above this level for further upside towards 23,870. We are likely to see price moving lower towards 20,430 if price fail to penetrate above the resistance at 22,655. Stochastic is still weak at the moment and could be turning down. MACD is still bearish.
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Recommendation : Short
Last : 23,070
Target price: 21,700
Protective stop: 24,150
Last week’s rebound from the 21,006 low was capped at the falling 20EMA, which is also the Fibonacci 38% retracement point of the decline that started since Jan 20. Price has to surpass the resistance at 24,030 for more upside to 25,130. Otherwise, we are likely to see a price decline back to test the low at 21,450 again. Stochastic is turning down and MACD is still bearish.
Sell 23,150 for 21,700 with stop above 24,150 was filled on 25 Mar 2020.
Nasdaq 100 Index
(CFD Symbol: USTec)
Last : 7553
Target price :
Last week’s rebound was resisted at the falling 20EMA, which coincides with the Fibonacci 38% retracement point. The price resistance at 7911 provides another resistance as well. We would like to see price moving and closing above 7911 for 8190. Any failure to penetrate above 7911 would likely to bring price lower to 7270 again. Stochastic is turning down and MACD is still bearish.
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Last : 2500
Protective stop :
We have seen a price rebound of this index after forming a Doji candlestick pattern last Monday. However, this corrective rally was capped at the falling 20EMA, which is also the Fibonacci 38% correction point. Price has to surpass this level for 2790, or we would see price moving lower to 2415. Stochastic could be turning down soon. MACD is still bearish.
Sell 2580 for 2390 with a stop above 2655.