CFD Indices – Three Major Indices Posting Their Second Straight Weekly Decline

Market News

  • Nasdaq slid while S&P 500 closed little changed on Friday as early gains in technology and growth names faded, with each of the three major Wall Street averages posting their second straight weekly decline.
  • Many investors view the recent slump as a healthy consolidation after a stunning five-month rally in the S&P 500 that was powered by a narrow group of heavyweight tech companies and massive amounts of fiscal and monetary stimulus.
  • The late-stage trials of the experimental vaccine, which has long been awaited to help pull the world out of a coronavirus-induced lockdown, developed with researchers from the University of Oxford, were suspended last week after an illness in a study subject in Britain, casting doubts on an early rollout.

Market Views

  • Asian shares started higher on Monday morning as hopes of a coronavirus vaccine were rekindled after AstraZeneca resumed its phase-3 trial while sentiment was still cautious ahead of a big week of central bank meetings in UK, Japan and U.S. Hang Seng index rose 158 points and Nikkei 225 index gained 173 points.
  • The Bank of Japan and the Bank of England will announce their respective policy decisions on Thursday. Asia’s focus will be on the election of Japan’s new Prime Minister with a party room vote expected to begin at 0500 GMT.

Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 27,919
Target price:
Protective stop:

Outlook
This index appears to have found support at the Fibonacci 38% correction point. It rebounded from this support and is now going to test its overhead 20EMA resistance. We would like to see price penetrate above the 20EMA for a rebound towards its all-time high of 29,195. Stochastic is falling near to the oversold region, which could raise odds for the potential rebound once we see a bullish crossover. MACD is still bullish at the moment.

Trading Idea
Wait for better trading idea


Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 24,713
Target price:
Protective stop:

Outlook
Price retested the previous low of 24,246 three days ago, and there is a rising window created today. As long as today’s gap of 24,406 is not closed, this could be a good sign for this index to test 25,107. It could form a potential Double Bottom if the 24,246’s low holds. Stochastic is at the oversold region and is likely to turn up, increasing the odds for price to rebound. MACD has turned bearish.

Trading Idea
Wait for better trading idea

Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 11,231
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 appears to hold at this support zone. As long as price holds at this support zone of 10,935, there is chance for this index moving higher to test its high again if it able to surpass the 20EMA resistance at 11,460. 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: 3374
Target price:
Protective stop:

Outlook
Price appears to be supported at the Fibonacci 38% retracement point of Jun-Sept 20’s rally. We are likely to see price moving higher to test its all-time high at 3588 once it penetrates above the 20EMA resistance at 3402. Stochastic is falling at the moment, but near to the oversold region, raising odds for price to rebound from this level. MACD is still bullish at the moment.

Trading Idea
Buy 3270 for 3440 with a stop below 3180

Related Posts

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.