- S&P 500 dropped 2% on Tuesday as optimism in tech stocks faded on rising worries that some states lifting restrictions too soon could spark a second wave of infections and inflict further economic damage.
- Investor optimism over the reopening of the economy remained cautious as White House health advisor Dr Anthony Fauci told Congress that the virus is not under control yet and raised concerns that some states are reopening businesses too soon, which may lead to further Covid-19 outbreaks.
- The U.S.-China jitters renewed after lawmakers introduced a bill that would grant the Trump permission to hit China with sanctions if the country does not cooperate with the investigation into the Covid-19 outbreak.
- Asian equities were set to pull back on Wednesday morning as heightened concerns about coronavirus infections and the timing for a vaccine outweighed the lift from rebounding oil prices. Nikkei 225 index fell 155 points and Hang Seng index was down 22 points.
- The Fed chair Jerome Powell is expected to deliver an economic update, but may take the opportunity to push back against the idea of cutting rates below zero, which will be watched by investors on Wednesday at 9:00 AM ET.
Dow Jones Index
(CFD Symbol: US30)
Last : 23,695
Price is hovering at the 20EMA, which is acting as a support to the price. It has to stand firm above the 20EMA for a test of its overhead gap resistance zone that range from 25,220 to 25,800. If this index were to drop below the 20EMA, it could be heading lower to 22,337. Stochastic is turning up. MACD is bullish and a bullish crossover has not seen yet.
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Recommendation : Short
Last : 24,285
Target price: 23,600
Protective stop: 24,850
On Monday, this index ended the day with a Doji candlestick after it tested the gap that was created on 4th May. This gap is also near to its overhead strong gap resistance zone that range from 24,700 to 25,010 again, which is also coincided with the Fibonacci 38% correction point of the decline. This resistance zone has to be surpassed for further upside; otherwise we could see a price correction again. Stochastic is turning up and MACD is bullish.
Sell 24,350 with stop above 24,850 for 23,600 was filled on 12 May 2020
Nasdaq 100 Index
(CFD Symbol: USTec)
Last : 9094
Target price :
We have seen a correction last night after a bearish engulfing candlestick was formed. Price is now testing the resistance-turned-support zone of 9000. As long as price stay above the 20EMA of 8850, we could see a possible test of a high again. Stochastic is still rising at the moment. MACD has turned bullish and a bearish crossover was seen.
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
This index was capped at the gap resistance zone which coincided with the Fibonacci 62% correction point at 2933. As long as price stay above the 20EMA at 2840, we look forward for price to surpass the resistance zone for more upside to 3130. However, inability to break above 2973 will result in a test of 2790 again. Stochastic is rising at the moment. MACD is bullish and a bullish crossover is likely.
Wait for better trading idea.