- Wall Street closed lower on Friday as investors wrestled with fiscal stimulus developments, concerns over a lengthy rollout of vaccines, and a growing number of state-level shutdowns to combat the spiralling COVID-19 pandemic. Dow Jones slid 219 points while S&P 500 and Nasdaq Composite declined 24 and 49 points.
- Markets are still stuck in a push-and-pull between the dramatic rise of new COVID cases versus apparent progress on vaccines, and this will likely to continue until we have an approved and distributed vaccine, said David Carter, chief investment officer at Lenox Wealth Advisors in New York.
- Fed chair Jerome Powell said Friday he would return unused emergency funds to the U.S. Treasury, as requested by Secretary Steven Mnuchin, as part a decision to let a series of credit programs expire at the end of the year.
- Asian shares were lower on Monday morning as hopes for imminent coronavirus vaccines buoyed investor sentiment, but worries over the impact of economic lockdowns and uncertainty over U.S. stimulus capped gains. Hang Seng index fell 64 points and Nikkei 225 index slipped 106 points.
- On the economic data front, Singapore’s economy contracted 5.8% in the third quarter, according to the country’s Ministry of Trade and Industry. The economy is now expected to contract by between 6% and 6.5% in 2020 compared to a year ago, and bounce back to growth in 2021, said the ministry.
Dow Jones Index
(CFD Symbol: US30)
Last : 29,364
Price is now trading within a small range of 28,960-30,090. It is now testing this lower range of the resistance-turned-support zone again. A potential Engulfing candlestick could be forming, but we would like to see a firm close tonight to confirm this reversal. The 20EMA comes in as another layer of support at 28,885. Stochastic is at the overbought region now. MACD is still strong and bullish.
Buy 29,300 with a stop below 29,100 for 29,750.
Hang Seng Index
(CFD Symbol: HK50)
Recommendation : Long @ 26,150
Last : 26,422
Target price: 26,750 Filled
Protective stop: 26,150
Price is still trading within a range of 25,890 to 26,870, which is where the gap support and the Jul 20’s resistance high lie. This index is likely to stay within this range until a breakout occurs. The 20EMA is also comes in at this level of support at 25,888. Stochastic is still strong but at the overbought region. MACD is also strong and bullish now.
Buy 26,150 for 26,750 with a stop below 25,930. Order was filled on 13 Nov. Shift stop to 26,150. Profit order was filled on 23 Nov.
Nasdaq 100 Index
(CFD Symbol: USTec)
Last : 11,951
Target price :
The rising 20EMA has been acting as support at the moment, where we have seen price moving higher along with the 20EMA. As long as price stays above the 20EMA at 11,800, the uptrend remains intact, and there is chance for this index moving higher again. Stochastic is relatively weak at the moment, and there is a bearish crossover. MACD is still bullish but there is a bearish crossover.
Buy 11,850 for 12,050 with a stop below 11,700.
S&P 500 Index
(CFD Symbol: US500)
This index has been maintaining above the gap support that was created on 9 Nov, which is also near to the Fibonacci 38% correction point of Oct-Nov 20’s price swing. The 20EMA is also comes in at this level at 3519. We could see price moving higher towards the previous high of 3674 if this support zone holds. Stochastic is moving lower now but MACD is still bullish.
Buy 3530 with a stop at 3499 for 3625