Market News
- The 30-stocks Dow Jones Index dipped 3.12 points to 26,449.54, while the S&P 500 index dipped 0.2% to 2,900.45. The NASDAQ Composite Index closed 0.05% lower at 7,996.08. The Nasdaq 100 index, a basket of the 100 largest companies in the composite index, rose 0.3% to a record high.
- Stocks initially rose as investors cheered strong earnings from companies like Morgan Stanley and PepsiCo, along with better-than-expected economic data out of China but sharp losses in health-care sector dragged the Dow Jones index lower.
- Overall, 84.6% of the S&P 500 companies that have reported first-quarter earnings have topped analyst expectations, according to FactSet. This was a highly anticipated earnings season as analysts polled by FactSet expected corporate earnings to have fallen by 4.2% in the first quarter.
Market Views
- Asian shares were subdued on Thursday after a negative performance on Wall Street, with caution ahead of business surveys in Europe and the Good Friday and Easter holidays keeping investors on the side line.
- Investors’ immediate focus turned to the release of Purchasing Managers Indexes (PMIs) for the manufacturing and service sectors in Europe later on Thursday to provide more clues on the strength of the euro zone economy.
Dow Jones Index
(CFD Symbol: US30)
Trend : Bullish
Recommendation :
Last : 26,497
Target price: 26,970
Protective stop:
Outlook
After making a new high at 26,553 on Tuesday, price has been on a decline. The decline has dropped below a neckline that defines a Head and Shoulder chart pattern, which has a target of 26,184. Both MACD and Stochastic gave divergence warnings when the index made a new high. We are anticipating a correction to 26,184.
Trading Idea
Wait for dip to 26,184 to get into a long position. Short term players can sell at current price for 26,190 with stop above the neckline at 26,440
Hang Seng Index
(CFD Symbol: HK50)
Trend : Bullish
Recommendation :
Last : 29,970
Target price: 30,650
Protective stop: 29,668
Outlook
After reaching a new high of 30,350 on Monday, price has been caught in a range of 30,350 to 29,708. Stochastic is about to turn lower and MACD could be turning bearish as it is very near to the zero line. 20EMA has also turned flat. We are likely to see a continuation of this consolidation within the recent range of 30,650 to 20,708 until there is a breakout.
Trading Idea
Wait for better trade signal and idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend : Bullish
Recommendation :
Last : 7651
Target price: 7685 reached
Protective stop:
Outlook
Price made a new high yesterday at 7711 but has been declining since. It is sitting on the 20EMA support at 7650. MACD is bullish and could be rising again but Stochastic is turning down from overbought extreme. The trend may be up but we would prefer to stay aside for the moment and wait for better signals
Trading Idea
Wait for better trading idea and signal
S&P 500 Index
(CFD Symbol: US500)
Trend : Bullish
Recommendation :
Last : 2890
Target price: 2940
Protective stop :
Outlook
Price made a new high at 2919 yesterday but has declined past an important support area. MACD could be about to turn bearish. Stochastic is already moving lower. 20EMA has turned bearish and is trending lower. This index is likely to decline to the next support area at 2860.
Trading Idea
Wait for dip to 2860 to get into a long position. Short term players can sell at current price for 2872 with stop above at 2905.
