- U.S. markets climbed on Thursday on a surge in risky assets like oil, offsetting concerns over an increasing death toll from the coronavirus pandemic that is expected to push the global economy into recession. The Dow and S&P 500 surged 2.2% while Nasdaq Composite rose 1.7%.
- Oil benchmarks jumped 20% last night after Trump said he expects Russia and Saudi Arabia to announce an oil production cut of up to 10 million to 15 million barrels as the two countries signalled willingness to make a deal.
- On Thursday, the U.S. Labour Department said U.S. initial jobless claims surged to more than 6 million last week, reaching a new record as coronavirus-related shutdowns roll through the country.
- Asian markets were mixed on Friday morning after crude prices notched their biggest one-day surge on record, helping offset concerns about the depth of a global recession. Nikkei 225 index rose 54 points while Hang Seng index fell 123 points.
- A private survey released Friday showed China’s services sector shrank further in March as the Caixin/Markit services Purchasing Managers’ Index (PMI) for March was at 43 following a record low of 26.5 in February.
Dow Jones Index
(CFD Symbol: US30)
Last : 21,204
The index was capped by the falling 20EMA, which is also the Fibonacci 38% of the correction point at 22,655. It is now being resisted at the price resistance of 21,466. As long as 21,466 is not penetrated, we are likely to see price moving lower towards 20,430. 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 : 23,098
Target price: 21,700
Protective stop: 24,150
The 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 : 7589
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 : 2507
Protective stop :
The corrective rally of this index was capped at the falling 20EMA, which is also the Fibonacci 38% correction point. Price has to surpass 2640 for 2790. A move below 2415 would accelerate the downside and we are likely to see price testing its low at 2184 again. Stochastic could be turning down soon. MACD is still bearish.
Sell 2580 for 2390 with a stop above 2655.