Market News
- Dow Jones rallied 553 points on Wednesday, with the S&P 500 closing above 3,000 for the first time since March 5, as the further easing of lockdowns lifted optimism for an economic recovery. Nasdaq Composite was slightly up 72 points as tech-related shares are among the most sensitive to Chinese growth.
- The advance was led by the gains in bank stocks as shares of JPMorgan Chase & Co surged 5.8% for a second day in a row, and the chief executive, Jamie Dimon, said Tuesday he expects JPMorgan will boost its credit reserves again in the second quarter as there are signs the economy is regaining its footing.
- On Wednesday, Walt Disney Co announced plans to begin reopening its Walt Disney World resort in Florida, the world’s largest theme park, in phases beginning July 11, and MGM Resorts said it would reopen its four Las Vegas casinos on June 4.
Market Views
- Asia Pacific markets were mixed on Thursday morning as growing optimism about a global economic recovery from the coronavirus pandemic trumped immediate concerns about a standoff between U.S. and China over Hong Kong. Hang Seng index slid 307 points while Nikkei 225 index rose 266 points.
- The Sino-U.S. relationship is likely to worsen after U.S. Secretary of State Mike Pompeo said overnight that China had undermined Hong Kong’s autonomy so fundamentally that the territory no longer warranted special treatment, a potentially big blow to the city’s status as a financial hub.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation : Long
Last : 25,670
Target price: 25,200 reached
Protective stop: 24,090
Outlook
This index managed to stay above the Flag pattern after the breakout. It is going to test its overhead gap resistance at 25,260. A break of this gap resistance will target the next resistance at 27,000. The 20EMa is still rising at the moment, which is a good sign and could support further price upside. Stochastic is still moving higher. MACD is bullish and a bullish crossover was seen
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 22,892
Target price:
Protective stop:
Outlook
This index broke below its key consolidation zone that ranged from 23,400 to 25,000 since April 20 last Friday. A small rebound occurred after touching the previous support low near 22,540, but was capped at the lower edge of the consolidation range. Our bearish view remains unchanged. If price is unable to move inside the channel and it is likely to test the low again. Stochastic is turning down at the moment. MACD is bullish but a bearish crossover was seen
Trading Idea
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 9396
Target price :
Protective stop:
Outlook
Price has been rising along with the rising 20EMA which is acting as first layer of support to the price. As long as price stay above the 20EMA at 9184, we are likely to see price moving higher towards its all-time high at 9753. However, there are divergence warnings given from both the Stochastic and the MACD. Watch out for the reversal signal
Trading Idea
Wait for better trading idea.
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 3039
Target price:
Protective stop:
Outlook
This index has surpassed the gap resistance zone that coincided with the Fibonacci 62% correction point at 2933. As long as price stay above the rising 20EMA support at 2929, it could be heading higher towards 3130. Stochastic is at the overbought region. MACD is bullish. Both indicators are supportive of further price upsides.
Trading Idea
Wait for better trading idea.
