Market News
- S&P 500 and the Nasdaq lost ground on Thursday, as investors took profits in advance of Friday’s jobs report, ending a four-day rally driven by rising economic sentiment. The Dow ended the day with a nominal gain of 11 points.
- Investors were a tad cautious at these heady levels with valuations at their highest since the dot.com boom in 2000. Technical chart indicators suggest the market is at overbought levels, a signal that a correction is due, said Matthew Sherwood, investment strategist for Perpetual.
- Economic data showed the number of Americans filing for unemployment benefits dipped below 2 million for the first time since mid-March, and plummeting international commerce resulted in a net widening of the U.S. trade gap.
Market Views
Asian stocks were set to hold tight ranges on Friday morning after a mixed Wall Street session and as investors awaited key U.S. jobs data while sustained hopes about a global economic recovery kept pressure on the safe-haven dollar. Nikkei 225 index fell 78 points and Hang Seng index was down 1 point.
- Oil prices were little changed in choppy trade as investors awaited a decision from top crude producers on whether to extend record output cuts. U.S. crude recently fell 0.16% to $37.35 per barrel and Brent was flat on the day.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 26,380
Target price: 26,900
Protective stop: 25,800
Outlook
This index managed to break through the gap resistance zone that ranged from 25,220 to 25,800 on Wednesday after breaking out from the Pennant pattern. Price could be continuing to move higher towards the next upside at 27,000. The 20EMA is still rising at the moment, confirming the bullish trend. Stochastic is at the overbought region but MACD is bullish.
Trading Idea
Buy 26,100 for 26,900 with stop below 25,800 was filled on 4 June 2020
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 24,429
Target price:
Protective stop:
Outlook
Price hit the upper end of the consolidation zone that ranged from 23,400 to 25,000 and a potential reversal candlestick pattern, one black crow, was formed yesterday. If price continue to form follow-through bearish candlestick, we are likely to see it testing the lower end of the consolidation range at 23,400 again. It has to penetrate above 25,000 to be bullish. Stochastic is turning up at the moment. MACD is bearish but a bullish crossover was seen.
Trading Idea
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 9650
Target price :
Protective stop:
Outlook
This index has been approaching its all-time high resistance at 9753 for the past 2 consecutive days. It has to surpass 9753 for more upside. Price could be forming a Rising Wedge chart pattern. A break of the lower trendline that coincides with the 20EMA at 9410 will confirm the reversal. Caution is advised as Stochastic is already in overbought extreme. MACD is still bullish but is flat at the moment.
Trading Idea
Wait for better trading idea.
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 3127
Target price:
Protective stop:
Outlook
This index has been rising along with the rising 20EMA which is acting as support to the price rally after breaking above the Flag pattern and also the gap resistance at 2965. Price is near to its overhead resistance of 3130, and it has to penetrate above this level for 3182. Stochastic is at the overbought region and MACD is bullish at the moment.
Trading Idea
Wait for better trading idea.
