- All three major U.S. stock averages lost ground on Thursday, with falling momentum tech stocks Apple, Microsoft and Amazon weighing heaviest due to mixed earnings reports and growing signs of a worsening coronavirus pandemic, which could exacerbate a deep economic recession.
- U.S. weekly jobless claims came in at 1.416 million for last week, marking the 18th straight week in which initial claims totalled more than 1 million, suggesting the United States’ economic recovery is stalling amid resurgence in COVID-19 cases.
- Investors are selling the greenback on expectations the U.S. economy will likely underperform its peers in the developed world as the surge in new coronavirus infections pushed the overall number of cases in the United States to over 4 million.
- Asian markets were mostly lower on Friday morning as China vowed to retaliate against a U.S. order to close one of its consulates, and the American equity markets fell on gloomy data about its labour market. Hang Seng index fell 373 points and Japan is closed for a holiday today.
- Oil prices fell 2% as the surge in coronavirus cases triggered fears of a hit to oil demand and the latest U.S.-China spat outweighed the benefit of a weaker dollar.
Dow Jones Index
(CFD Symbol: US30)
Last : 26,597
This index could be forming a potential Double Top reversal pattern, and a bearish engulfing candlestick pattern was seen last night. A move below the 20EMA support at 26,380 would confirm the reversal and could target for 25,710, the Double Top target. It has to surpass 27,180 for more upside. Stochastic could be turning down. MACD is still bullish at the moment but there is a bearish crossover.
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Hang Seng Index
(CFD Symbol: HK50)
Last : 24,850
This index is now sitting inside the key blue consolidation zone, which is also the Fibonacci 38% correction point. A bearish Engulfing was seen on Wednesday, and price moved below the falling 20EMA. A violation of 24,760 would target for more downside at 23,690. Stochastic is still falling at the moment. MACD is still bullish but there was a bearish MACD crossover
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Nasdaq 100 Index
(CFD Symbol: USTec)
Recommendation : Long
Last : 10,525
Target price : 11,050
Protective stop: 10,350
On Tuesday, price hit exactly 11,071, which was the previous all-time high, and has been moving lower since then. It is now testing the 20EMA support at 10,540. If price close below the 20EMA today, we are likely to see price heading lower towards 10,230. There is divergence warning given from both the Stochastic and MACD. Stochastic is moving lower at the moment. MACD is still bullish at the moment but a divergence could be forming.
Buy at 10,650 for 11,050 with a stop below 10,350 was filled on 23 July 2020.
S&P 500 Index
(CFD Symbol: US500)
Last night, this index closed with a bearish engulfing reversal candlestick pattern. The immediate target lies at the 20EMA support at 3190. A violation of the 20EMA would hint for more downside. There is a divergence warning given from the MACD. Stochastic I moving lower at the moment. MACD is still bullish but just had a bearish crossover
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