Mid Morning Market Comments 中盘市场评论

After IMF lowered global economic growth from 3.7 to 3.5 and China's 2018 whole year GDP came in at 6.6%, lowest in 28 years, US stock indexes are dropping sharply. At 9:40 AM Pacific time, Dow -292, S&P 500 -36, Nasdaq -110, Russell 2000 -22. Oversea markets are also down as follows: Shanghai -1.18%, Japan -0.47%, HongKong -0.70%, Germany -0.41%, UK -0.99%, France -0.42%.

Before this morning's market drop, in less than a month, major market indexes have rallied sharply with Dow +13.8%, S&P 500 +14%, Nasdaq +16%, Russell 2000 +17%. Market was way overbought and a pull back is reasonable. Since all the 4 indexes have risen above their 50 Day Moving Averages, so they become the first line of supports when the market comes down. These levels are Dow 24306, S&P 500 2623, Nasdaq 6973, Russell 2000 1445. The next levels of support are the 20 Day Moving Average levels, they are Dow 23549, S&P 500 2543, Nasdaq 6782, Russell 2000 1394.

How far the market can go down to depends on corporate earning results and US-China trade talk progress at the end of January.  Base on the weakness of major sectors such as OIH, SMH, SOCL, XRT, IBB, IYM, FDN and the strength of fear gauge VXX, it is likely the market weakness at least will last for the whole day today.


国际货币基金组织将全球经济增长率从3.7调降至3.5及中国2018年全年国内生产总值降至6.6％，为28年来最低导致美国股指大幅下挫。太平洋时间上午9:40，道指-292，标准普尔500 -36，纳斯达克-110，罗素2000 -22。海外市场下跌如下：上海-1.18％，日本-0.47％，香港-0.70％，德国-0.41％，英国-0.99％，法国-0.42％。

在今早市场下跌之前一个月，主要市场指数大幅上涨，道琼斯指数上涨13.8％，标准普尔500指数上涨14％，纳斯达克指数上涨16％，罗素2000指数上涨17％。市场处于超买状态，回调是合理的。由于所有4个指数都超过了50天移动平均线，因此它们成为市场下跌时的第一道支撑。这些水平是道琼斯24306，标准普尔500 2623，纳斯达克6973，罗素2000 1445。下一个支撑位是20日移动平均线水平，它们是道琼斯23549，标准普尔500 2543，纳斯达克6782，罗素2000 1394。

市场可以走多远取决于企业盈利结果和1月底美中贸易谈判的进展。基于OIH，SMH，SOCL，XRT，IBB，IYM，FDN等主要行业的弱势以及恐慌指标VXX的强势，市场疲软可能至少会持续今日一整天。