- Stocks rose to all-time highs on Friday as investors ended a record-setting week on a high note. The major indexes passed multiple milestones and posted solid gains last week amid testimony from the top Fed official signaling that a rate cut was coming.
- Dow Jones jumped 240 points to close at its all-time high at 27,332. S&P 500 gained 13 points, notching its first close above 3,000 while Nasdaq Composite rose 48 points.
- Expectations for lower rates persisted despite the release of some stronger-than-expected inflation data last week. The producer and consumer price indexes, which are the two widely followed measures of inflation, rose more than expected last month, said the Labor Department.
- Asian stocks were higher in Monday morning trade following the release of GDP data that showed the Chinese economy growing at its slowest pace in at least 27 years. Hang Seng was up 77 points and Nikkei rose 42 points.
- Worries about world growth and low inflation have meant investors are piling money onto bonds and money market funds. The danger is that with a mountain of cash parked in money market funds any trade ceasefire would cause a huge shift away from safe assets, said Sean Darby, Jefferies’ global equity strategist.
Dow Jones Index
(CFD Symbol: US30)
Last : 27,352
Price continued its rally and made a record high again last Friday. The 20EMA is still bullish and is rising. Price is heading towards the Flag pattern target at 27,500. The Stochastic is in the overbought region but still strong at the moment as there is a bullish crossover. The MACD is also bullish at the moment and the fast line has turned up.
Wait for better trading idea.
Hang Seng Index
(CFD Symbol: HK50)
Last : 28,615
Price rebounded from the gap support which is also near the Fibonacci 38% of the rally from 4th June to 4th July for the third time. It is now testing the overhead gap resistance zone. Should price break above that gap resistance, price could be testing 29,072 again. Stochastic has turned down. The MACD is still bullish at the moment and the fast line is turning around.
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Last : 7943
Target price :
Price continued its rally after rebounding from the 20EMA with a bullish hammer candlestick last Tuesday. The 20EMA is still bullish and is rising. Price could be heading towards its nearest resistance point at 8000. The Stochastic is in the overbought region but still strong at the moment. The MACD is also bullish and the fast line is turning around. However, the strength of the upwards movement has decreased along with the rally, which is giving concern.
Wait for new trading idea and opportunities.
S&P 500 Index
(CFD Symbol: US500)
Trend : Bullish
Recommendation : Long
Last : 3014
Target price: 3046
Protective stop : 2985
Price recorded a new high at 3013 on Friday, after breaking out from a continuation Flag pattern. The 20EMA is still strong and bullish. Price could be heading towards its Flag patter target at 3046, which is also the Fibonacci 138% of the decline from 1st may to 3rd June. The Stochastic is in the overbought region but still strong at the moment. The MACD is also bullish and the fast line is turning around.
Buy at 3003 for 3046 with stop below 2985 was triggered on 12th July.