Market News
- Wall Street closed lower on Tuesday, snapping a three-day winning streak as investors took money off the table hours before the first U.S. presidential debate. Both the Dow and S&P 500 slid 0.48%, closing 131 points and 16 points lower respectively, while the Nasdaq Composite lost 0.29%, led by the falls in Apple, Amazon and Microsoft.
- Republican President Donald Trump repeatedly interrupted Democratic rival Joe Biden in the Cleveland debate, the first ahead of the Nov. 3 U.S. presidential election, that touched on Trump’s taxes, the economy, the coronavirus pandemic and election integrity.
- While the election has implications for different sectors, notably healthcare, green energy and beneficiaries of Trump’s corporate tax cuts, Goldman Sachs analysts expected a Democratic sweep of the White House and both chambers of Congress would be beneficial to S&P 500 profits through 2024.
Market Views
- Shares in Asian were mixed and the dollar was under pressure on Wednesday morning in the lead up to the first U.S. presidential debate, as financial markets looked to take a measure of both candidates. Hang Seng index surged 310 points while Nikkei 225 index fell 29 points.
- U.S. House Speaker Nancy Pelosi said on Tuesday she hoped to have a coronavirus aid deal with the White House this week, after speaking with Treasury Secretary Steve Mnuchin and making plans for further talks on Wednesday.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 27,382
Target price:
Protective stop:
Outlook
The price decline was halted just below the Fibonacci 50% correction point but above the Fibonacci 62% point. Price is now testing the overhead 20EMA resistance, but appears to be resisted at this level. A firm close above the 20EMA at 27,570 tonight will be crucial for this index to move higher towards its previous high. Stochastic is near to the oversold region and is turning up, suggesting for a potential rebound. MACD is still bearish but there is a bullish crossover
Trading Idea
Buy 27,150 for 27,740 with a stop below 26,750.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 23,570
Target price:
Protective stop:
Outlook
Price breached the low of 24,246 and has been moving lower since that day. It is now sitting at the Fibonacci 161% price projection level at 23,180. This projection level also coincides with the gap zone that created on 1st June. As long as 23,180 hold, we could see a rebound towards the 20EMA resistance at 24,030. Stochastic is at the oversold region and is turning up. MACD has turned bearish and is still declining.
Trading Idea
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 11,294
Target price :
Protective stop:
Outlook
The price decline was halted by the Double Bottom low of 10,675. This index has rebounded from this low, and has moved above the 20EMA last night. As long as price can stay above the 20EMA for three consecutive days, this could increase the validity of the 20EMA breakout, and would target for 11,780. Stochastic is rising from the oversold region. MACD has turned bearish but there is a bullish crossover.
Trading Idea
Buy 11,150 for 11,430 with a stop below 11,000.
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation: Long
Last: 3327
Target price: 3420
Protective stop:3320 Triggered
Outlook
Price has been rebounding after nearly hitting the Fibonacci 62% correction point. It is now going to test its overhead declining trendline resistance at 3367. A three consecutive close above 3367 would confirm this breakout and target for 3442. Stochastic is rising from the oversold region now. MACD has turned bearish at the moment but a bullish crossover is likely.
Trading Idea
Buy 3350 for 3420 with a stop below 3320. Stop at 3320 was triggered on 29 Sep.
