Market News
- S&P 500 and the Dow reversed earlier gains and closed lower on Wednesday, while Nasdaq Composite ended 14 points higher as news of spiking pandemic data and the prospect of a new round of economic lockdowns dampened investor optimism over signs of economic recovery.
- Several U.S. states including Oklahoma reported a surge in new coronavirus infections on Wednesday, just days before a planned campaign rally for President Donald Trump in Tulsa that will rank as the nation’s largest social gathering by far in three months. Over in China, a recent jump in infections in Beijing led the city to cancel flights, close schools as well as block off some neighbourhoods
- U.S. Fed Chair Jerome Powell said Wednesday that the central bank will move away from corporate bond ETFs in favour of direct corporate-bond purchases as it’s a better tool for supporting liquidity and market functioning. Powell had warned of “significant uncertainty” about the economic recovery.
Market Views
- Asian stocks were set to dip on Thursday morning after a choppy Wall Street session as spiking coronavirus cases and prospects of new lockdowns erased earlier confidence about a global economic recovery. Hang Seng index fell 271 points and Nikkei 225 index slid 226 points.
- Strickland said authorities in the country are “taking aggressive action” though the approach toward containing the virus’ spread has been “more targeted” as compared to lockdown measures that were imposed in Wuhan — where the disease was first reported — earlier this year.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 25,917
Target price:
Protective stop:
Outlook
The sharp correction was halted at the key Fibonacci 62% retracement point, which is also the gap resistance-turned-support zone. The support point of 24,560 is crucial, and if price breaks below this support, we could see this index forming lower highs and lower lows which hint for more downside. Do watch out for the reaction at this key support. We could see this index testing its high of 27,608 again as long as it stays above this low. Stochastic could be turning up. MACD is also bullish at the moment.
Trading Idea
Wait for better trading idea.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 24,433
Target price:
Protective stop:
Outlook
Price has fallen inside the consolidation zone that ranged from 23,400 to 25,000 and we expect this index to move within this range, until either end of the range boundary is broken for the next directional move. The 20EMA is currently flat, suggesting that price is moving in sideways manner. Stochastic could be turning up. MACD is bearish and a bearish crossover was seen.
Trading Idea
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 9934
Target price :
Protective stop:
Outlook
The three days’ price decline was halted when this index hit the 20EMA, where it had provided support to the price. A bullish engulfing pattern was formed on Monday, suggesting a potential bottom. We are likely to see this index tests its all-time high at 10,155. Stochastic could be turning up. MACD is still bullish but a bearish crossover was seen.
Trading Idea
Buy 9810 for 10,150 with a stop below 9640
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 3093
Target price:
Protective stop:
Outlook
This index was supported by the key resistance-turned-support zone at 2965. On Monday, it ended the day with a bullish Engulfing candlestick pattern which hints of a potential low. Price is hovering around the rising 20EMA. We could see this index moving higher towards its all-time high at 3232 again. Stochastic could be turning up. MACD is still bullish at the moment but there is a bearish crossover.
Trading Idea
Wait for better trading idea.
