Market News
- Wall Street ended lower on Thursday following a late-session reversal; with Facebook weighing on the market after Trump said he would sign an executive order related to social media companies and would hold a news conference on China on Friday.
- Trump said he was directing Attorney General William Barr to work with states to enforce their own laws against what he described as deceptive business practices by social media companies. Shares of Twitter slid 4.4% and Facebook fell 1.6% following this news as it removes a liability shield they currently enjoy.
- Concerns about China-U.S. relations may also have driven the late decline. White House economic adviser Larry Kudlow told CNBC on Thursday that Hong Kong may now be needed to be treated like China when it comes to trade and other matters, echoing remarks by Secretary of State Mike Pompeo on Wednesday.
Market Views
- Asia’s stock markets pulled back on Friday morning, as investors await the U.S. response to China tightening control over the city of Hong Kong as well as the overnight slide in the US equity market. Hang Seng index fell 158 points and Nikkei 225 index slid 61 points.
- Hong Kong’s government warned on Friday that withdrawing its special U.S. status, which has underpinned it as a finance hub, could be a “double-edged sword” and urged U.S. to stop interfering in internal affairs.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 25,376
Target price:
Protective stop:
Outlook
This index is now testing its overhead gap resistance of 25,260 after breaking out from the Flag pattern since 18 May. It has to breakthrough this gap resistance zone for further upside to 27,000. Otherwise, we could expect a correction to follow. The 20EMA is still rising at the moment, which is a good sign and could support further price upside. Stochastic could be turning down. MACD is bullish and a bullish crossover was seen.
Trading Idea
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Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 23,021
Target price:
Protective stop:
Outlook
This index managed to have a slight rebound again today after touching the previous support low near 22,540. However, this rebound could be capped at the lower edge of the consolidation range that ranged from 23,400 to 25,000 since April 20. It has to move inside the consolidation range for more upside. A violation of 22,540 will target the next support at 22,030. Stochastic could be turning up. 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 : 9444
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 9233, we are likely to see price moving higher towards its all-time high at 9753. However, we have doubts as there are divergence warnings given from both the Stochastic and the MACD. MACD is still bullish at the moment. Watch out for the reversal signal.
Trading Idea
Wait for better trading idea.
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 3031
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 2929, it could be heading higher towards 3130. Stochastic is at the overbought region and could turn down but MACD is bullish.
Trading Idea
Wait for better trading idea.
