CFD Indices 30 April 2019

Market News

  • S&P reached an all-time high on Monday, but the session’s gains were kept in check as investors await PMI data from China and FOMC announcement later in the week. NASDAQ Composite was up 15 points and also hit a new historical high. Dow Jones was up 11 points.
  • US Treasury Secretary Mnuchin hopes that the latest talks between the United States and China may seal a trade deal. Talks between US and China are scheduled for today in Beijing. Optimism of a trade deal and a dovish Fed has powered the rally in stocks to new historical high in 2019.
  • US March Core PCE, the Fed’s preferred inflation measure was lower than expectation of 1.7%, coming in at 1.6%. March Personal Spending was a strong 0.9% compared to expectation of 0.7%. Consumer spending enjoyed the sharpest rebound in 9.5 years but core inflation remains near a 14-month low.

Market Views

  • Stocks in Asian markets declined on Tuesday as China’s PMI data showed manufacturing activities grew less than expected in April. Stock market in Japan is closed for the week to celebrate the enthronement of Crown Prince Naruhito.
  • The official China PMI data came in at 50.1 against an expectation of 50.5. Official Non-manufacturing PMI was also lower, coming in at 54.3 against expectation of 55.0. The Caixin PMI for April also missed expectation of 51.0, coming in at 50.2.

Dow Jones Index

(CFD Symbol: US30)

Trend : Bullish
Recommendation :
Last : 26,554
Target price:
Protective stop:

Outlook

Price dropped to a low of 26,305 on Thursday and the rally from this low could be part of a bigger correction. Price has exceeded the Fibonacci 161.8% projection target of 26,701 and if this high is out exceeded, we can expect a correction to follow. We are expecting another decline below 26,305 to complete the correction in the next few days. 20EMA is flat at the moment. Stochastic is in the overbought extreme but MACD is bearish.

Trading Idea

Wait for the correction towards 26,200 to enter into a long position


Hang Seng Index

(CFD Symbol: HK50)

Trend : Bullish
Recommendation :
Last : 29,793
Target price: 30,650
Protective stop:

Outlook

The index had declined below the range to a low of 29,570 but had bounced back into the range again. It is currently within the range of the past 2 days. Stochastic is into the overbought extreme but MACD is bearish at the moment. We think 29,570 may be the low and this index could be on the way up to test the previous high of 30,349 again. A move below 29,570 would negate our bullish view.

Trading Idea

Look to buy around 29,780 for a test of 30,349.


Nasdaq 100 Index

(CFD Symbol: USTec)

Trend : Bullish
Recommendation :
Last : 7776
Target price
Protective stop:

Outlook

The rally last night did not exceed the previous high of 7859, reaching a high of 7851. Price has declined below a uptrend line and if price dropped below the support of 7762, it could be a sign of a possible ABC correction unfolding at the moment. MACD is bearish and Stochastic is turning down and both are not a good sign for bulls. A break of support at 7760 could lead to a test of 7700.

Trading Idea

Wait for better trading idea and signal


S&P 500 Index

(CFD Symbol: US500)

Trend : Bullish
Recommendation :
Last : 2937
Target price: 2946 reached
Protective stop :

Outlook

Price made a new historical high of 2949 on Monday night but the uptrend could be about to reverse. Price has exceeded the Fibonacci 161.8% target and MACD is showing a divergence warning. Stochastic is near to the overbought extreme. 20EMA is bullish and rising but a price movement below the 20EMA could be the first sign of a reversal and a top in place.

Trading Idea

Wait for better trading idea


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