Market News
- S&P 500 and Nasdaq boasted record closing highs on Tuesday with technology leading the charge as Apple and Zoom Video soared while economic data and moves toward stimulus talks in Washington helped fuel optimism.
- Zoom Video Communications surged 40.8% after the videoconferencing company raised its annual revenue forecast by more than 30% as it converted more of its huge free user base to paid subscriptions. Along with Amazon, it provided Nasdaq’s biggest boost for the day.
- U.S. Treasury Secretary Steven Mnuchin said he would telephone House Speaker Nancy Pelosi about stalled coronavirus aid negotiations later on Tuesday and White House chief of staff Mark Meadows said he expects Senate Republicans to bring up a targeted COVID-19 relief bill next week.
Market Views
- Asian shares were mixed on Wednesday morning, encouraged by buoyant U.S. moves that followed stronger-than-expected manufacturing indicators while the dollar emerged from its recent lows against the euro. Hang Seng index fell 115 points while Nikkei 225 index rose 91 points.
- Earlier in the day ISM data showed U.S. factory activity expanded for the third straight month to a reading of 56.0 in August, the highest since November 2018. The figures follow encouraging manufacturing surveys from China and Europe earlier in the day.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 28,676
Target price:
Protective stop:
Outlook
This index is now trading and hovering at the Fibonacci 127% projection level after breaking its previous resistance high of 27,803. There was a Bearish Engulfing formed on Monday, but there is no follow-through candlestick. It has to surpass its new all-time high of 28,808 for more upside to 29,480. The 20EMA is providing support at 28,020. Stochastic is still strong at the moment and MACD is still bullish, but both momentum indicators are giving divergence warning that is raising concern.
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 25,013
Target price:
Protective stop:
Outlook
Price was capped by the previous high resistance which is also the Fibonacci 62% correction point, forming a big Bearish Engulfing candle and brought price lower to the rising trendline support that has formed since Mar 20. Watch out for the breakout for the next directional movement, else, price is likely to consolidate within this range. Stochastic is falling at the moment but MACD has turned bullish.
Trading Idea
Buy 25,750 for 26,300 with stop below 25,450. Stop was triggered
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 12,378
Target price :
Protective stop:
Outlook
This index has risen to a new all-time high at 12,419 today. As there is still no divergence warning given from the MACD, and there is also no prior resistance that will cap the rally, there is high chance that this index will continue rising towards 12,870. Stochastic is still strong and is rising at the overbought zone at the moment. MACD is also strong and bullish with both lines far above the zero line.
Trading Idea
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 3535
Target price:
Protective stop:
Outlook
Price has been rising strongly after breaking above its previous high at 3399, as it is trading far above the 20EMA. A new all-time high was created at 3532 last night. It is now testing the overhead Fibonacci 200% projection at 3529. If price surpass this level, we could peg the target higher at 3710. Stochastic is still strong at the overbought region. MACD is also bullish and strong, as both of the MACD’s lines are far above the zero line.
Trading Idea
Wait for better trading idea
