- The S&P 500 posted a nominal gain on Friday as further clarity regarding the timeline for the development of a coronavirus vaccine and much better-than-expected retail sales data brought buyers back to the market. The Dow also joined the positive territory, but the Nasdaq ended the session lower.
- U.S. Treasury Secretary Steven Mnuchin told House Speaker Nancy Pelosi that President Donald Trump would “weigh in” with Senate Majority Leader Mitch McConnell if an agreement is reached on a new pandemic relief package.
- UK Prime Minister Johnson said the UK needs to prepare for a no-deal outcome, as both sides cannot agree on a Canada-style FTA. Talks resume in London on Monday, but without the political willingness to shift ground, there is little the negotiators can achieve.
- Asian markets started higher on Monday morning, buoyed by hopes of a U.S fiscal package before the U.S. presidential elections next month and expectations of a coronavirus vaccine by the end of this year, though the mood was still cautious as infections jumped. Hang Seng index rose 227 points and Nikkei 225 index surged 261 points.
- Investors now await China’s third-quarter gross domestic product (GDP), monthly production and retail sales due later in the Asia morning. Chinese growth has bounced back well from its early COVID-19 losses and this data will be key to identify how the economy has progressed.
Dow Jones Index
(CFD Symbol: US30)
Last : 28,657
This index could be moving within a rising channel that was formed since Jun 20. A long-legged Hammer candlestick was formed on Thursday, hinting at potential rebound if price can stay above 20EMA at 28,220. We could see price moving higher if it can surpass the previous high of 28,957. Stochastic is falling at the moment, but is still strong at the overbought region. MACD has turned bullish.
Buy 28,500 for 28,940 with a stop below 28,150
Hang Seng Index
(CFD Symbol: HK50)
Last : 24,281
Price was resisted for the second time at the Fibonacci 62% correction point of the Aug-Sept’s decline. If price cannot breakthrough this resistance today, a price correction to the 20EMA at 24,220 will be expected. It has to surpass this resistance for further upside. Stochastic is rising now and is near to the overbought region. MACD has turned bearish.
Sell 24,700 for 24,250 with a stop above 24,830
Nasdaq 100 Index
(CFD Symbol: USTec)
Last : 11,887
Target price :
Price is undergoing a pullback after penetrating the Fibonacci 62% correction point of the Sept’s decline, which is also the gap resistance zone. A Flag pattern could be in the process of formation, and there is a support zone at 11,610-11,650. Look for a Flag breakout for price to resume its upward momentum towards 12,467. Stochastic is falling but still strong at the overbought region. MACD has turned bullish.
Buy 11,650 for 12,000 with a stop below 11,450.
S&P 500 Index
(CFD Symbol: US500)
Price has been moving higher after breaking above the declining trendline and the 20EMA. The 20EMA is rising at the moment, showing the bullish trend now. As long as price stays above the 20EMA at 3426, we are likely to see price moving higher towards 3588. Stochastic is falling but is still at the overbought region. MACD has turned bullish.
Buy 3470 for 3550 with a stop below 3415