Market News
- S&P 500 closed at a record high on Tuesday, rebounding from huge losses triggered by the coronavirus pandemic and crowning one of the most dramatic recoveries in the index’s history. It makes the bear market that started in late February the S&P 500’s shortest ever.
- Data on Tuesday showed U.S. homebuilding accelerated by the most in nearly four years in July in the latest sign the housing sector is emerging as one of the few areas of strength in an economy suffering a record slowdown. That further added to market optimism.
- Minutes from the Federal Reserve’s recent meeting due on Wednesday may provide some insight into how the central bank sees the recovery playing out. The Fed has cut rates to near zero to bolster business through the pandemic.
Market Views
- Asian shares climbed to a seven-month peak on Wednesday morning tracking the S&P 500, which scaled all-time highs driven by ever expanding policy stimulus aimed at cushioning the blow to economies from the coronavirus pandemic. Nikkei 225 index rose 50 points while Hang Seng index remained unchanged.
- Trump on Tuesday said he postponed trade talks with China, adding that he does not want to talk to China right now. Representatives from U.S. and China had been scheduled to discuss implementation of their so-called Phase 1 trade deal on Saturday, but those talks were cancelled.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 27,829
Target price:
Protective stop:
Outlook
This index could be consolidating right now, as the candlesticks for the past few days were relatively small, after breaking out from the triangle pattern. The 20EMA is still rising at the moment, confirming the bullish trend and acting as support at 27,330. The triangle target lies at 29,490. Stochastic is at the overbought region but is still strong at the moment. MACD is also bullish but could have a bearish crossover that hint for a correction soon.
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation : Long
Last : 25,328
Target price: 26,150
Protective stop: 25,000
Outlook
Price rebounded and managed to break above the 20EMA resistance point and also its previous high resistance of 25,275, which is now turning to be the support at the moment. As long as price stays above 25,275, we could see price moving higher and testing its high at 26,270. A failure to sustain above this support would bring price lower to test its low again. Stochastic is still moving up. MACD is bearish but had a bullish crossover.
Trading Idea
Buy 25,500 with stop below 25,000 for 26,150. Order was filled on 17 Aug.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 11,429
Target price :
Protective stop:
Outlook
This index has been rising steadily along with the rising 20EMA which is acting as support at the moment. A new all-time high of 11,421 was created last night, where we have seen price penetrated above its previous high. The next resistance lies at 11,550. Stochastic is still strong and is rising at the moment. MACD is bullish and had a bullish crossover.
Trading Idea
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 3397
Target price:
Protective stop:
Outlook
This index created a new all-time high of 3395 last night. Price has been rising steadily along with the rising 20EMA, but the size of the candles is small, raising concern of a potential reversal. There is also divergence warning given from the Stochastic and MACD. The next resistance point lies at 3416. Stochastic is still at the overbought region. MACD is bullish.
Trading Idea
Wait for better trading idea
