Market News
- Dow Jones slid 135 points and S&P 500 fell 10 points on Thursday, mainly pulled lower by technology stocks such as Microsoft Corp and Apple, as elevated levels of unemployment claims heightened concerns about the economic toll from rising coronavirus cases.
- U.S. retail sales increased more than expected in June, but resurgence in new COVID-19 cases is undercutting the budding recovery, keeping 32 million Americans on unemployment benefits. A jump in cases of the virus has forced California and other states to shut down again, sparking fears of more business damage and slowing the pace of a Wall Street rally.
- Markets will now watch on how U.S. might adopt further stimulus to help steer the world’s largest economy through a worsening coronavirus pandemic. Congress is set to begin debating such a package next week, as several states in the South and West implement fresh lockdown measures to curb rising coronavirus cases.
Market Views
- Stocks in Asia Pacific mostly edged higher in Friday morning following Thursday’s drop that saw shares in China plunging more than 4%, shrugging off an overnight Wall Street fall as U.S. prepares to debate fresh economic stimulus to see the country through its coronavirus outbreak. Hang Seng index rose 220 points and Nikkei 225 index was up 3 points.
- U.S. Federal Reserve’s stash of bonds and other assets rose for the first time in more than a month, even as many of its emergency lending facilities continued to get little use and a new lending program designed to help small and medium-sized companies hurt by the coronavirus crisis got off to a slow start.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 26,718
Target price:
Protective stop:
Outlook
On Wednesday, this index ended the day with a Spinning Top candlestick pattern, followed by a bearish Engulfing on the next day. The gap support that was created on 15 Jul at 26,620 is crucial. We would like to see a rebound from this support to retest its all-time high. A violation of this support could bring price lower to 26,100 or even 25,560. 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 : Long
Last : 25,145
Target price: 26,570
Protective stop: 25,230 triggered
Outlook
This index has violated the gap support that was created on 6 July, which is also the 20EMA support. It is now sitting at the upper end of the blue consolidation zone, which is also the Fibonacci 38% correction point. Price has moved below the falling 20EMA as well. A move below 24,900 could bring price lower to 24,180. Stochastic is turning down at the moment. MACD is still bullish and there is also a bearish MACD crossover
Trading Idea
Buy at 25,630 for 26,570 with a stop below 25,230. Order was filled on 10 July. Stop was triggered on 16 July.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 10,606
Target price :
Protective stop:
Outlook
A bearish Engulfing reversal candlestick was seen on 13 July, after this index created a new all-time high at 11,071. Price is now supported by the rising 20EMA which is acting as first layer of support at the moment. As long as price stay above 20EMA at 10,415, we see price moving higher again. Below the 20EMA will likely reverse the bullish trend and to bring price lower. Stochastic is falling at the moment. MACD is still bullish, but there is a bearish crossover.
Trading Idea
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 3211
Target price:
Protective stop:
Outlook
This index tested its previous all-time high resistance and created a new all-time high at 3240 on Wednesday. A bearish Engulfing was followed-through the next day. The 20EMA is acting as a support at 3150 at the moment. Price could be forming a potential Double Top reversal chart pattern if it breaks below the 20EMA support. There is also divergence warning given from both Stochastic and MACD. Stochastic is now turning down. MACD is bullish and there was a bullish crossover.
Trading Idea
Wait for better trading idea
