Market News
- Wall Street’s main indexes tumbled on Thursday, marking their deepest one-day declines since June as investors dumped the high-flying technology sector, while economic data highlighted concerns about a long and difficult recovery. Nasdaq led the pullback with a decline of almost 5% in a day, dragged by Apple, Amazon and Tesla.
- Mike Zigmont, head of trading and research at Harvest Volatility Management in New York said Thursday’s decline could due to people jealous of the gains that they were missing out on since March 23 low and they just poured in, and eventually that behaviour exhausts itself and what we’re seeing is the exhaustion last night.
- Earlier in the day, data showed the number of Americans filing new claims for unemployment benefits fell more than expected last week, but remained extraordinarily high. Investors worried last night’s fall might turn into a deeper rout, with a crucial U.S. payroll report due later on Friday seen as possible selling trigger if it disappoints.
Market Views
- Asia’s stock markets slipped on Friday morning, following the steepest Wall Street selloff since June, while safer bonds and the dollar found support as investors sought shelter. Hang Seng index slid 421 points and Nikkei 225 index fell 224 points.
- Oil was weakened and under pressure with both Brent and WTI crude hitting one-month lows amid worries about U.S. demand. Brent crude futures dipped 0.5% to $43.83 a barrel while U.S. crude futures fell 0.7% to $41.09 a barrel.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 28,279
Target price:
Protective stop:
Outlook
A new all-time high was created at 29,195 last night, but unfortunately this index closed the day with a Bearish Candlestick pattern that wiped off the previous two days’ gains. It is now sitting at the 20EMA support at 28,110. With the divergence warning given from both the Stochastic and MACD, a violation of the 20EMA would bring price lower towards 27,430. Stochastic is falling at the moment but MACD is still bullish, but just had a bearish crossover.
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 24,627
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. It continued its falling and broke below the rising trendline. The 20EMA is falling at the moment. If this index cannot move back in the rising trendline, we could see a further selling pressure towards 24,240 or 23,780. Stochastic is falling at the moment and MACD has a bearish crossover.
Trading Idea
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 11,638
Target price :
Protective stop:
Outlook
A huge Bearish Engulfing reversal candle was formed last night, wiping off the previous six days’ gains and bringing price lower to the first layer of 20EMA support of 11,660. If price cannot hold at this support, we could see a deeper correction towards 11,150. There is divergence warning given from the Stochastic, but not the MACD. Stochastic is falling at the moment. MACD is bullish but just had a bearish crossover.
Trading Idea
Buy 11,600 for 12,400 with stop below 11,350.
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 3445
Target price:
Protective stop:
Outlook
Price is now sitting at the first layer of 20EMA support of 3433, after being brought lower by the Bearish Engulfing reversal candlestick. A move below the 20EMA will hint for deeper correction of 3340. There is divergence warning given from the Stochastic that is raising concern. Stochastic is falling at the moment. MACD is still bullish but just had a bearish crossover.
Trading Idea
Wait for better trading idea
