Market News
- Wall Street’s three major indexes closed lower for the second day in a row after Fed Chair Jerome Powell warned on Wednesday of extended economic weakness due to the coronavirus pandemic and called for Congress to agree on additional fiscal support.
- Powell earlier on Wednesday said the Fed is still not looking at setting rates below zero, and instead pushed lawmakers to use spending to boost the economy during the deadly coronavirus pandemic.
- Trump on Wednesday said he still strongly believes the Federal Reserve should have negative interest rates, but gave a modicum of approval to Fed Chair Jerome Powell who said earlier in the day the central bank would not lower rates beyond zero.
Market Views
- Asian markets slump on Thursday morning after the head of the Federal Reserve warned of a “significantly worse” U.S. recession than any downturn since World War Two because of coronavirus pandemic fallout. Hang Seng index slid 233 points and Nikkei 225 index was down 128 points.
- Markets are looking ahead to the release of the European Central Bank’s latest economic bulletin at 0800 GMT and the latest U.S. jobless claims data at 1230 GMT.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 23,255
Target price:
Protective stop:
Outlook
Price has dropped below the 20EMA, which is acting as a support to the price and it could be heading lower to 22,337. 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. Stochastic is turning down at the moment. MACD is bullish and a bullish crossover has not seen yet.
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation : Short
Last : 23,961
Target price: 23,600
Protective stop: 24,500
Outlook
A Doji candlestick near the gap ended a mini rally. This gap is also near to its overhead strong gap resistance zone that range from 24,700 to 25,010 again, which 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 could be turning down and MACD is bullish.
Trading Idea
Sell 24,350 with stop above 24,850 for 23,600 was filled on 12 May 2020. Lower stop to 24,500 on 14 May 2020.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 9002
Target price :
Protective stop:
Outlook
We have seen a correction for two consecutive nights 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 falling at the moment. MACD has turned bullish and a bearish crossover was seen.
Trading Idea
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 2817
Target price:
Protective stop:
Outlook
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.
Trading Idea
Wait for better trading idea.
