- Wall Street ended sharply lower on Thursday, with the Nasdaq tumbling 3%, hit by rising Treasury yields and fresh worries about the coronavirus pandemic in Europe after France’s prime minister imposed a month-long lockdown on Paris and several other regions due to the health crisis.
- The yield on the benchmark 10-year Treasuries crossed 1.75% to hit a 14-month high a day after the Fed projected the strongest growth in nearly 40 years as the COVID-19 crisis winds down. The Fed also repeated its pledge to keep its target interest rate near zero for years to come.
- Markets are now braced for the outcome of a Bank of Japan policy meeting where it is widely expected to loosen its control of bond yields and trim buying of ETFs, tweaks aimed at making the stimulus package more sustainable.
- Asian share markets eased on Friday as a spike in global bond yields soured sentiment toward richly priced tech stocks, while a stampede out of crowded positions in crude oil caused the sharpest setback in months. Hang Seng index slid 481 points and Nikkei 225 index fell 261 points.
- Oil prices fell on Friday during Asian trading hour as concerns over weaker demand in the short term deepened U.S. crude was down 0.55% at $59.67 a barrel while global benchmark Brent declined 0.51% to $62.96.
Dow Jones Index
(CFD Symbol: US30)
Last : 32,945
Price has been resisted after hitting the Fibonacci 161% projection level. Last night, price ended the day with a bearish candle. It has to break above this resistance level for more upside. Stochastic is still strong at the moment but is at the overbought region. MACD is also strong and bullish now.
Buy 32,150 for 32,800 with a stop below 31,870.
Hang Seng Index
(CFD Symbol: HK50)
Recommendation : Long @ 28,900
Last : 28,957
Target price: 30,100
Protective stop: 28,600
Price was resisted by the 20EMA for the past four occasions. The 20EMA is still moving lower now, hinting of a bearish trend. If price is unable to penetrate above the 20EMA, we are likely to see price moving lower again. Stochastic is rising from the overbought region but is still weak. MACD is also bearish now.
Buy 28,900 for 30,100 with a stop below 28,600. Buy entry was filled on 12 Mar.
Nasdaq 100 Index
(CFD Symbol: USTEC)
Recommendation : Short @ 13,050
Last : 12,806
Target price : 12,300
Protective stop: 13,100
Price was capped by its previous resistance high of 13,340. A long bearish candle was enfolded last night after a Spinning Top indecision candlestick. The 20EMA is falling now. Stochastic could be moving lower again. MACD is bearish now and a bearish MACD crossover could be likely.
Sell 13,050 for 12,300 with a stop above 13,400. Entry order was filled on 16 Mar. Stop lowered to 13,100 on 19 Mar.
S&P 500 Index
(CFD Symbol: US500)
A long bearish candlestick was formed last night, following the two indecision candlesticks earlier on. The 20EMA is acting as first layer of support at 3904. A violation of this 20EMA would hint for a deeper correction. Stochastic is at the overbought region. MACD is bullish now but could be forming potential divergence warning.
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