CFD Indices – Wall Street’s Futures Sank On New COVID-19 Variant News

Market News

  • Markets in the U.S. were closed on Thursday for the Thanksgiving holiday. U.S. stock futures declined in overnight trading on Thursday after WHO warned of a new COVID-19 variant. The variant has been detected in Hong Kong, according to South Africa’s Minister of Health Joe Phaahla.
  • Futures for the Dow Jones Industrial Average fell more than 400 points, while the S&P 500 index declined by 44 point. The Nasdaq index future was 75 points in the negative territory.
  • Those losses came after World Health Organization officials warn of the detection of a new and possibly vaccine-resistant coronavirus variant sent investors scurrying toward the safety of bonds, the yen and the dollar. A special meeting is scheduled for Friday to discuss its implications for vaccines and treatments.

Market Views

  • Shares in Asian markets were hit hard in Friday trade, with Japan’s Nikkei 225 plunging about 3% while Hong Kong’s Hang Seng index fell more than 2% as fears of a new Covid-19 variant weighed on investor sentiment.
  • Little is known of the variant, detected in South Africa, Botswana and Hong Kong, but scientists said it has an unusual combination of mutations and may be able to evade immune responses or make it more transmissible.

Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation : Long @ 35,450
Last : 35,361
Target price: 36,000
Protective stop: 35,200

This index has dropped below the 20EMA. There is a support at 34,950 which needs to hold if not the trend will turn bearish. Stochastic is in the oversold zone and hinting at a limited downside. 20EMA is bearish. MACD remains bullish but is near to the zero line and can turn bearish if there is further price decline

Trading Idea
Buy 35,450 for 36,000 with a stop below 35,200. Entry price was triggered on 26 Nov.

Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation : Long @ 24,550
Last : 24,272
Target price: 25,100
Protective stop: 24,100

This index has continued to move lower after hitting the high at 25,819. 20EMA has turned bearish. Stochastic continues to decline. MACD has turned bearish and is hinting at a bearish price trend. As long as this index stays above 24,100, there is still a chance to see 25,819 again.

Trading Idea
Buy 24,550 with a stop below 24,100 for 25,100. Entry was triggered on 26 Nov.

Nasdaq 100 Index
(CFD Symbol: USTEC)
Trend :
Recommendation :
Last : 16,287
Target price :
Protective stop:

This index has been declining after hitting an all-time high at 16,767. We think the decline is just a correction and not a new bear trend as long as this index stays above 15,700. Stochastic is declining after a bearish crossover near the overbought zone. MACD remains bullish but there is a divergence warning. 20EMA is currently supporting price at 16,148.

Trading Idea
Wait for better trading idea

S&P 500 Index
(CFD Symbol: US500)
Last: 4657
Target price:
Protective stop:

This index has been declining after creating a new all-time high at 4744. We believe this decline is a correction and not a new bearish trend as long as this index stays above 4550. The 20EMA remains bullish. Stochastic is declining after a bearish crossover in the overbought region.  MACD remains bullish but has given a divergence warning of a possible price high.

Trading Idea
Buy 4620 for 4740 with a stop below 4550

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