Market News
- U.S. stocks fell on Thursday as technology-related shares slid for a second day and as government data showed high levels of weekly jobless claims. Amazon and Apple were the biggest drags on the S&P 500 and Nasdaq, putting these two indices to close 28 points and 140 points lower while the Dow fell 130 points.
- Adding to concerns about a stalling recovery, the Labour Department’s report showed that while fewer Americans filed new claims for unemployment benefits last week, the number remained perched at extremely high levels.
- Fed Chair Jerome Powell laid out a menu of factors – including wage growth, workforce participation and disparities in minority joblessness relative to whites – that must be satisfied before the Fed would view the economy at maximum employment, and even consider raising interest rates.
Market Views
- Shares in Asian markets rose on Friday morning following pledges by central bankers globally to do whatever it takes to support the economic recovery while oil perked up as OPEC threatened to clamp down on member states that did not cut output. Hang Seng index rose 37 points and Nikkei 224 index gained 6 points.
- The Bank of England said on Thursday it was considering negative interest rates as the UK economy faces rising COVID-19 cases, higher unemployment and a possible new Brexit shock. It also kept its main stimulus programs on hold, citing a faster-than-expected economic recovery from pandemic lows.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 27,847
Target price:
Protective stop:
Outlook
This index has rebounded from the Fibonacci 38% correction point but this rebound was capped by the previous gap resistance zone that was created since 4th Sep. We would like to see price breaking above the gap resistance zone at 28,080 for a test of its previous high of 29,195. Stochastic is rising from near the oversold region. MACD is still bullish but close to the zero line.
Trading Idea
Buy 27,575 for 28,035 with a stop below 27,330.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 24,378
Target price:
Protective stop:
Outlook
Price is now retesting the previous low of 24,246. Let’s watch for a price reaction at this support. A potential triple bottom chart pattern could be forming if price manages to hold at this support. The 20EMA is now falling and is acting as resistance at 24,765. A violation of price support at 24,246 would accelerate the downside towards 23,780. Stochastic is now rising but still weak. MACD has turned bearish but a bullish crossover is possible in the next couple of days.
Trading Idea
Buy 24,300 for 24,700 with a stop below 24,150.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 11,113
Target price :
Protective stop:
Outlook
Price is still struggling to stay above the resistance-turned-support zone. As long as this index holds at this support zone of 10,935, there is a possibility for this index to move higher to test its high at 12,467 again if it able to surpass the 20EMA resistance at 11,380. Stochastic is rising from the oversold region. MACD is bullish and a bullish crossover could happen over the next couple of days.
Trading Idea
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 3355
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 closes above the 20EMA resistance at 3393. Stochastic is rising from near the oversold region. MACD is still bullish at the moment and a bullish crossover is possible over the next couple of days.
Trading Idea
Wait for better trading idea
