CFD Indices – US Indices Slipped On Poor Corporate Earnings

Market News

  • Stocks on Wall Street closed little changed on Tuesday, with the Dow and S&P 500 slipping on disappointing earnings and little hope for a U.S. coronavirus stimulus before Election Day, though the Nasdaq rose as Microsoft Corp firmed in the run-up to its results after the closing bell.
  • New coronavirus infections have touched record levels in the United States recently, and the number of hospitalized COVID-19 Americans jumped to a two-month high, leading to further restrictions. However, a trial of the Eli Lilly and Co’s antibody therapy failed to show a benefit in hospitalized patients. In Europe, many countries have also reimposed measures to curb the virus spread.
  • Data on Tuesday showed U.S. consumer confidence unexpectedly fell in October which is considered crucial for Republican President Trump’s re-election as fears about the economy’s outlook mounted, although other economic figures were mostly positive, with orders for key capital goods hitting a six-year high.

Market Views

  • Asia Pacific markets slipped on Wednesday morning as coronavirus infections grew at an alarming pace in the United States and Europe, while uncertainty over next week’s U.S. elections added to a “risk off” tone. Hang Seng index fell 52 points and Nikkei 225 index lost 75 points.
  • Some market players see that as a sign more investors are wary of the possibility that the election outcome can be contested, possibly leaving markets in limbo for weeks which would likely further delay any negotiation on economic relief package U.S. policymakers have been struggling to agree on.

Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation : Long
Last : 27,317
Target price: 28,680
Protective stop: 27,980 Triggered

This index could be moving within a rising channel that was formed since Jun 20. It is now approaching the lower boundary of the channel. A potential rebound can be expected at this zone if it can form a potential reversal candlestick pattern. If price violates this lower channel, further downside at 26,530 will be pegged. Stochastic is moving lower at the moment. MACD is still bullish.

Trading Idea
Buy 28,230 for 28,680 with a stop below 27,980. Buy order was filled on 26 Oct. Stop was triggered on 27 Oct.

Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation : Long
Last : 24,707
Target price: 25,250
Protective stop: 24,530

Price has been hovering around the Fibonacci 62% correction point of the Aug-Sept’s decline for the past few days. The 20EMA is acting as support at the moment at 24,460. Stochastic is at the overbought region and could be turning down, hinting at potential pullback. MACD has turned bullish now with both of its lines above the zero line.

Trading Idea
Buy 24,800 for 25,250 with a stop below 24,530. Buy order was filled on 22 Oct.

Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation : Long
Last : 11,548
Target price : 12,000
Protective stop: 11,450 Triggered

Price has been correcting and has fallen below the 20EMA support. The 20EMA is now suggesting a bearish trend. The next support lies at the Fibonacci 62% correction point at 11,280. There is no sign of reversal as yet. Stochastic is still moving lower. MACD has turned bullish.

Trading Idea
Buy 11,650 for 12,000 with a stop below 11,450. Order was filled on 19 Oct. Stop was triggered on 26 Oct.

S&P 500 Index
(CFD Symbol: US500)
Recommendation: Long
Last: 3370
Target price: 3495
Protective stop: 3395 Triggered

Price has been moving lower after breaking below the 20EMA support. The 20EMA is now falling, suggesting a bearish trend for now. The next support lies at the Fibonacci 62% correction point of Sep-Oct 20’s rally at 3340. Stochastic is falling but is near to the oversold region. MACD is still bullish.

Trading Idea
Buy 3420 for 3495 with a stop below 3395. Stop was triggered on 26 Oct

Related Posts

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.