Market News
- Dow Jones jumped 260 points to 25,983, posting its best weekly gain since November after jobs report spurred rate-cut hopes. The S&P 500 were up 29 points and Nasdaq Composite gained 126 points.
- A drastic slowdown for jobs creation in May has increased the odds that the Fed would go on an easier monetary policy. The U.S. economy added 75,000 jobs in May, marking the second time in four months that jobs growth totalled less than 100,000. However, economists polled by Dow Jones expected an increase of 180,000 jobs. Wage growth also slowed.
- Fed Chair Jerome Powell said Tuesday the central bank is “closely monitoring the implications of these developments for the U.S. economic outlook and, as always, we will act as appropriate to sustain the expansion.”
Market Views
- Asian stocks were traded higher on Monday morning as Trump announced last Friday that the U.S. and Mexico had reached a deal to avoid the implementation of tariffs, originally set to kick in today. Nikkei was up 1.15% and Hang Seng rose 0.86%. Australia is closed for a holiday today.
- U.S. Treasury Secretary Steven Mnuchin told CNBC on Sunday that Trump will decide on whether to implement more tariffs on China after the American leader meets with Chinese President Xi Jinping later in June.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 26,066
Target price:
Protective stop:
Outlook
Price has hit 25,970 after a low was established at 24,603. We expect 26,144 the support-turned-resistance level, which is also the Fibonacci 62% of the decline from 1st May to 14th May, to provide resistance. Stochastic is moving higher but MACD has not given any reversal hint as yet. We will wait for confirmation of the reversal.
Trading Idea
Wait for better trading idea.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 27,560
Target price:
Protective stop:
Outlook
Price broke above last week consolidation range with a gap up today. It is going to test its overhead 20EMA resistance at 27,606. This is also previous gap resistance. We believe price could break above 27,606 and move higher to test 28,070. MACD is still bearish and Stochastic is going to move out of oversold extreme. The correction could be over.
Trading Idea
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 7433
Target price
Protective stop:
Outlook
Price moved above 20EMA after climbing higher from a low formed at 6935. This low was close to the Fibonacci 161.8% of the decline from 3rd May to 14th May. It is also close to the Fibonacci 50% of 2019’s rally and near to a price low support. Price could be testing 7570 again. Stochastic is moving higher but MACD is still bearish.
Trading Idea
Wait for better trading idea.
S & P 500 Index
(CFD Symbol: US500)
Trend :
Recommendation :
Last : 2881
Target price:
Protective stop :
Outlook
Price reached a low of 2727 and has been climbing higher after a Morning Star candlestick reversal pattern. Price has moved above the 20EMA and is likely to be resisted by 2897. Stochastic is moving higher but MACD is still bearish. We would prefer to wait for confirmation.
Trading Idea
Wait for confirmation of the reversal.
