Market News
- U.S. stocks closed lower for a third straight session on Tuesday as heavyweight technology names extended their sell-off to send the Nasdaq into correction territory, while Tesla suffered its biggest daily percentage drop after the stock was passed over for inclusion in the S&P 500.
- Technology once again dragged indexes lower with a drop of 4.59%, the third straight decline and worst three-day performance for the sector since mid-March. Tesla plunged 21.06% to suffer its biggest daily percentage drop as the electric-car maker was excluded from a group of companies being added to the S&P 500.
- Sentiment for equities and other risky assets also took a hit after AstraZeneca halted a late-stage trial of one of the leading COVID-19 vaccine candidates due to an unexplained illness in a study participant.
Market Views
- Asia Pacific markets fell on Wednesday morning and oil prices hit lows not seen since June after a rout of technology shares sank Wall Street for a third consecutive day and a major drugmaker delayed testing of a coronavirus vaccine. Hang Seng index fell 246 points and Nikkei 225 index slid 365 points.
- Chinese inflation data for August released Wednesday showed the producer price index declined 2.0% in August from a year earlier. The consumer price index in August rose 2.4% as compared with a year ago, also in line with expectations of analysts in a Reuters poll.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 27,505
Target price:
Protective stop:
Outlook
This index is currently undergoing a price correction after a reversal Bearish Engulfing candlestick was formed last Thursday. It is now testing the Fibonacci 38% retracement point of Jun-Sept 20’s rally. If price can hold at this support, we could see a price rebound at this level. Stochastic is falling at the moment but MACD is still bullish, although there is a bearish MACD crossover that confirm the price correction.
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 24,354
Target price:
Protective stop:
Outlook
Price broke below the rising trendline support that has formed since Mar 20 last Thursday. Currently this index pullback is capped by the rising trendline. We are likely to see further selling pressure towards 24,240 or 23,780. The 20EMA is also falling at the moment, confirming the downward momentum ahead. 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 : 11,129
Target price :
Protective stop:
Outlook
A huge Bearish Engulfing reversal candle was formed last Thursday, bringing this index lower to the resistance-turned-support zone. Price is testing this support zone and is trying its best to penetrate above this zone. If it is able to penetrate and stand above this support zone, we could see a price rebound. If this support fails, a deeper correction could be expected. Stochastic is falling at the moment. MACD is bullish but had a bearish crossover.
Trading Idea
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 3336
Target price:
Protective stop:
Outlook
Price broke below the 20EMA support last Friday, and dipped close to the Fibonacci 38% correction point, after being brought lower by the Bearish Engulfing reversal candlestick. It is now testing this correction point and is trying to climb back above this point 3339. A successful close above this 3339 would hint for a potential rebound, else, a failure moves to penetrate 3339 would likely to bring price lower. Stochastic is falling at the moment. MACD is still bullish but had a bearish crossover.
Trading Idea
Buy 3270 for 3440 with a stop below 3180
