CFD Indices – US Indices Fell On Rising Coronavirus Cases

Market News

  • U.S. stocks fell on Tuesday, adding to losses into the close, as investors took profits a day after the S&P 500 logged its longest streak of gains this year and as new U.S. coronavirus cases rose further. Dow Jones fell 396 points, S&P 500 dropped 34 points and Nasdaq Composite slid 89 points.
  • Large parts of the United States reported tens of thousands of new coronavirus infections. New York expanded its travel quarantine for visitors from three more states; while Florida’s greater Miami area rolled back its reopening.
  • Wall Street encountered a little bit of a pullback after a significant five-day move in the market coupled with the normal concerns about the virus and Cleveland Federal Reserve Bank President Loretta Mester talking about a long road to recovery.

Market Views

  • Asian stocks were set for a mixed open on Wednesday morning, as an increase in new coronavirus cases in some parts of the world cast doubts over the economic recovery, leading some investors to cash in on recent gains ahead of earnings season. Hang Seng index rose 76 points while Nikkei 225 index fell 43 points.
  • NAB economist Tapas Strickland said it will be important to watch the number of U.S. deaths in coming weeks and whether greater questions will be asked about the extent of necessary restrictions.

Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 25,975
Target price:
Protective stop:

Outlook
This index appears to have found a support ground at the Fibonacci 62% correction point, which is also the previous low support zone. It has rebounded from there and has been staying above the 20EMA. There is a chance for this index to retest its all-time high of 27,608 as long as this support holds. Below the 20EMA, there is a possibility of this index going lower to 24,890. Stochastic is moving up at the moment. MACD is bullish and there is a bullish crossover.

Trading Idea
Wait for better trading idea.


Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 26,162
Target price:
Protective stop:

Outlook
This index has finally broken out of the consolidation zone that ranged from 23,400 to 25,000 that lasted for almost 3 months. On Monday, price closed above the upper end of the boundary with a big gap up and a bullish long candle. As long as Monday’s gap of 25,340 is not closed, we are likely to see price testing the next resistance zone at 27,140. Stochastic is turning up and MACD is bullish. There is also a bullish MACD crossover.

Trading Idea
Buy at 25,630 for 26,570 with a stop below 25,230.

Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 10,567
Target price :
Protective stop:

Outlook
This index created a new all-time high at 10,705 last night after rebounding from the 20EMA support. The next resistance lies at the Fibonacci 127% projection level at 11,300. The 20EMA at 10,155 will be acting as support. Stochastic has turned up again and is now at the overbought region. MACD is still bullish and there is also a bullish crossover.

Trading Idea
Wait for better trading idea


S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 3154
Target price:
Protective stop:

Outlook
This index has been rising after rebounding from the key resistance-turned-support zone, which is also the previous low support since 29 June. There is high chance that price will retest its all-time high of 3232 again. Stochastic is turning up with after bullish crossover. MACD is bullish and there was a bullish crossover.

Trading Idea
Wait for better trading idea

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