CFD Indices – US Indices Futures Slide As Trump Tests Positive For COVID-19

Market News

  • Wall Street closed higher at the end of a whipsaw session on Thursday as investors juggled hopeful and pessimistic news on the progress of stimulus talks in Washington amid signs of waning momentum of economic recovery from the pandemic recession, now entering its ninth month.
  • A spate of data, including jobless claims and consumer spending, suggested that the plodding economic recovery could be losing steam. Investors now look to the Labour Department’s employment report expected Friday to further gauge the economy’s progress.
  • The U.S. House of Representatives on Thursday approved a $2.2 trillion Democratic plan to provide more economic relief from the coronavirus pandemic, as a bipartisan deal continued to elude House Speaker Nancy Pelosi and the White House.

Market Views

  • Asian markets were higher on Friday morning, as a U.S. stimulus deal remained out of reach and investors waited on fresh U.S. employment data for a read on the economic toll from the coronavirus pandemic. Nikkei 225 index gained 29 points while Hong Kong is closed for a holiday today.
  • Oil prices fell more than 3% as rising coronavirus cases around the world dampened the demand outlook, while a rise last month in member output from the Organization of the Petroleum Exporting Countries also pressured prices.

Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 27,383
Target price:
Protective stop:

Outlook
Price rebounded after slightly violating the Fibonacci 50% correction point but above the Fibonacci 62% point. Price has moved above the 20EMA resistance for the past two nights, and we would like to see a firm close tonight to confirm the 20EMA breakout, which will target the previous high at 28,207. Stochastic is turning up at the moment. MACD is still bearish but there is a bullish crossover.

Trading Idea
Buy 27,250 for 27,950 with a stop below 27,000.


Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 23,746
Target price:
Protective stop:

Outlook
Price rebounded from 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 are likely to see a rebound towards the 20EMA resistance at 24,050 or the support-turned-resistance zone at 24,246. Stochastic is turning up from the oversold region. MACD has turned bearish but a bullish crossover could be likely.

Trading Idea
Wait for better trading idea

Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 11,546
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. It could be moving higher towards the Fibonacci 62% of the Sept 20’s decline at 11,780. Stochastic is rising at the moment. MACD has turned bearish but there is a bullish crossover.

Trading Idea
Buy 11,350 for 11,800 with a stop below 11,100.


S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 3368
Target price:
Protective stop:

Outlook
Price has been rebounding after nearly hitting the Fibonacci 62% correction point. It has penetrated the declining trendline resistance at 3367 last night, but we would like to see a three consecutive close above 3367 to confirm the breakout and target for 3442. Stochastic is rising now. MACD has turned bearish at the moment but there is a bullish crossover.

Trading Idea
Buy 3315 for 3400 with a stop below 3290

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