Market News
- Wall Street rallied in a rocky session on Thursday with the Dow ending 52 points higher as beaten-down technology shares gained favour and after US data showing a surge in the sale of new homes revived faith in the economic recovery even as U.S. jobless claims rose unexpectedly.
- The wild session indicated caution was in store, said Dennis Dick, a trader at Bright Trading LLC, who warned market sentiment that drove momentum has sharply changed, as fear of missing out has turned into to fear of losing actual money and this is a shakeout of the retail investors.
- Democrats in the U.S. House of Representatives are working on a $2.2 trillion coronavirus stimulus package that could be voted on next week, a key lawmaker said, as House Speaker Nancy Pelosi reiterated that she is ready to negotiate with the White House.
Market Views
- Asian markets were set to open higher on Friday morning as a late Wall Street rally supported global sentiment although weak U.S. data and uncertainty about a stimulus package in Washington have kept a lid on confidence. Hang Seng index rose 118 points and Nikkei 225 index gained 136 points.
- The CBOE volatility index, known as Wall Street’s fear gauge and which is hovering near two-week highs, is expected to climb in the run-up to the quarter-end next week. The key is the VIX index, which has not yet reached levels that would suggest a continued strong move to the downside, said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 26,965
Target price:
Protective stop:
Outlook
This index has continued its downward movement after being capped by the price resistance of 28,370. It is forming a lower highs and lower lows, and we expect price to test the key Fibonacci 62% at 26,330 if it further violates 26,880. Stochastic is near to the oversold region and is turning up, suggesting for potential rebound. MACD has turned bearish but there could be a potential divergence warning given from the histogram.
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 23,401
Target price:
Protective stop:
Outlook
Price breached its previous low of 24,246 with a long bearish candle on Monday. The outlook of this index is negative as price is forming lower highs and lower lows. The 20EMA is falling and is acting as resistance to the price. The next support lies at 23,180 and if this support is further violated, we could target 22,520. Stochastic is still weak and is falling now. MACD has turned bearish and is still declining.
Trading Idea
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 10,965
Target price :
Protective stop:
Outlook
Price is hovering around the resistance-turned-support zone. As long as it able to stay above its previous low of 10,675, there is chance for this index to move higher if it surpass the 20EMA resistance at 11,210. Stochastic is at the oversold region and is turning up, hinting at a potential rebound ahead. MACD has turned bearish but a bullish crossover is likely. The MACD histogram is also giving a divergence warning.
Trading Idea
Buy 10,900 for 11,200 with a stop below 10,650
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 3263
Target price:
Protective stop:
Outlook
Price has been declining along with the falling 20EMA. It is going to test the key Fibonacci 62% correction point at 3185. Let’s watch for the price reaction at this key support as price could not break below this support if the uptrend remains intact. Stochastic is still weak and could be turning up. MACD has turned bearish at the moment.
Trading Idea
Wait for better trading idea
