Market News
- U.S. stocks closed lower after a choppy trading session on Thursday as heavyweight tech-related stocks resumed their decline following a sharp rebound the previous session, while elevated jobless claims reminded investors of a still-difficult recovery ahead.
- The number of Americans filing new claims for unemployment benefits remained high last week, as layoffs and furloughs persisted across industries. U.S. Senate on Thursday killed a Republican bill that would have provided around $300 billion in new coronavirus aid, as Democrats seeking far more funding prevented it from advancing.
- The CBOE volatility index climbed on Thursday. A separate report showed U.S. producer prices rose slightly more than expected in August as the cost of services increased solidly.
Market Views
- Asian markets were higher on Friday morning despite the declines in technology stocks that began last week and growing concerns about another round of negotiations on the UK’s departure from the European Union. Hang Seng index rose 121 points and Nikkei 225 index gained 68 points.
- The European Union told Britain on Thursday it should abandon a plan to break their divorce treaty, but Prime Minister Boris Johnson’s government refused and moved forward with a draft law that could sink four years of Brexit talks.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 27,691
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 near to the oversold region and could be turning up. MACD is still bullish, although there is a bearish MACD crossover that confirms the price correction.
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 24,399
Target price:
Protective stop:
Outlook
Price broke below the rising trendline support that has formed since Mar 20 last Thursday. The 20EMA is falling at the moment, confirming the downward momentum ahead. It is now sitting at its previous low support of 24,246. A violation of this low would reinforce the selling pressure towards 23,780. Stochastic is falling at the moment but is at the oversold region. MACD has turned bearish.
Trading Idea
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 11,141
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 the 20EMA resistance that capped the rally. It has to break above the 20EMA for price to move higher. Stochastic is falling at the moment but near to the oversold region. 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: 3358
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 the 20EMA. A successful close above the 20EMA would hint for a potential rebound, else, it 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
