Market News
- Dow Jones rallied 529 points on Tuesday on optimism about the development of coronavirus vaccines and a revival of business activity, but the S&P 500 failed to hold above the key psychological level of 3,000 points after reports that Trump’s administration was considering sanctions on China.
- Stocks pared gains late in the session, after Bloomberg News reported the Trump administration was weighing a range of sanctions on Chinese officials, businesses and financial institutions, reinforcing comments earlier in the day from White House adviser Larry Kudlow.
- Data showed U.S. consumer confidence nudged up in May, adding to hopes that the worst of the economic impact of the shutdown is in the past. Elsewhere, German consumer climate also improved, highlighting the optimism in economic recovery.
Market Views
- Asian shares slipped on Wednesday morning as investor concerns about rising tensions between U.S. and China tempered optimism about a re-opening of the world economy. Hang Seng index fell 121 points and Nikkei 225 index was down 4 points.
- Overnight, hundreds of riot police took up posts around Hong Kong’s legislature in anticipation of protests on Wednesday.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation : Long
Last : 25,165
Target price: 25,200
Protective stop: 24,090
Outlook
This index managed to stay above the Flag pattern after the breakout. It is going to test its overhead gap resistance at 25,260. A break of this gap resistance will target the next resistance at 27,000. The 20EMa is still rising at the moment, which is a good sign and could support further price upside. Stochastic is still moving higher. MACD is bullish and a bullish crossover was seen
Trading Idea
Buy 24,380 for 25,200 with a stop below 23,900 was filled on 19 May.
Raise stop to 24,090 on 22 May.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 23,317
Target price:
Protective stop:
Outlook
This index broke below its key consolidation zone that ranged from 23,400 to 25,000 since April 20 on Friday. Price appears to have a rebound after touching the previous support low near 22,540, but was capped at the lower edge of the consolidation range. Our bearish view unchanged if price is unable to move inside the channel and price is likely to test the low again. Stochastic is turning down at the moment. MACD is bullish but a bearish crossover was seen.
Trading Idea
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 9487
Target price :
Protective stop:
Outlook
Price has been rising along with the rising 20EMA which is acting as first layer of support to the price. As long as price stay above the 20EMA at 9188, we are likely to see price moving higher towards its all-time high at 9753. However, there are divergence warnings given from both the Stochastic and the MACD. Watch out for the reversal signal
Trading Idea
Wait for better trading idea.
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 3018
Target price:
Protective stop:
Outlook
This index has surpassed the gap resistance zone that coincided with the Fibonacci 62% correction point at 2933. As long as price stay above the rising 20EMA support at 2916, it could be heading higher towards 3130. Stochastic is rising at the moment but is at the overbought region. MACD is bullish. Both indicators are supportive of further price upsides.
Trading Idea
Wait for better trading idea.
