Market News
- Wall Street’s main indexes rose to all-time highs on Friday as data showing the slowest U.S. jobs growth in six months raised investors’ expectations for a new fiscal relief bill to help revive the coronavirus-hit economy. Dow Jones rose 248 points, S&P 500 was up 32 points and Nasdaq Composite gained 87 points.
- President-elect Joe Biden said Friday’s “grim” jobs report shows the economic recovery is stalling and warned the “dark winter” ahead would exacerbate the pain unless the U.S. Congress passes a coronavirus relief bill immediately.
- Investor focus is on a last-ditch attempt by Britain and the European Union to strike a post-Brexit trade deal this week, with probably just days left for negotiators to avert a chaotic parting of ways at the end of the year.
Market Views
- Asian shares retreated from a record peak on Monday morning after a Reuters report U.S. was preparing to impose sanctions on some Chinese officials highlighted geopolitical tensions, while oil prices fell on surging virus cases. Hang Seng index plunged 476 points and Nikkei 225 index fell 106 points.
- U.S. was preparing sanctions on at least a dozen Chinese officials over their alleged role in Beijing’s disqualification of elected opposition legislators in Hong Kong. The move comes as President Donald Trump’s administration keeps up pressure on Beijing in his final weeks in office.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 30,133
Target price:
Protective stop:
Outlook
Price is going to test the all-time high resistance of 30,223 that created last Friday. If this index can surpass this high, we look forward for price moving higher towards 31,130. The 20EMA has been rising steadily and is now providing support to the index at 29,570. Stochastic is still strong and just had a bullish crossover. MACD remains bullish
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 26,329
Target price:
Protective stop:
Outlook
This index is now moving within a consolidation range. It is being resisted at 27,070 for the fifth times, and it will need to break above this resistance for more upside. Price is breaking the 20EMA at the moment, and if price close below the 20EMA at 26,360 today, there is chance for price testing 25,900. Stochastic is falling now. MACD is still bullish but there is a bearish crossover.
Trading Idea
Buy 26,010 for 26,680 with a stop below 25,850.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 12,517
Target price :
Protective stop:
Outlook
This index has created an intraday all-time high at 12,571 today. Although price has been moving higher, but the candles are relatively small and weak. There could be divergence warning given from the MACD that warned for the top, and if a correction happens, we could see price moving lower towards the 20EMA at 12,170. Stochastic is at the overbought region. MACD is still bullish but is also relatively weak.
Trading Idea
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 3691
Target price:
Protective stop:
Outlook
Price broke above the ascending triangle pattern last Friday and created a new all-time high at 3700. The next resistance lies at 3946. The 20EMA is still rising, suggesting the bullish trend is intact and is acting as support at 3610, which is also near to the lower triangle support. Stochastic is at the overbought zone now. MACD is still bullish and a bullish crossover is likely. MACD may be forming a divergence warning.
Trading Idea
Sell 3700 with a stop above 3730 for 3640.
