Market News
- Nasdaq ended at an all-time high for a second straight day on Tuesday after briefly rising above the 10,000 mark for the first time, backed by strong gains in tech-related shares, becoming the first of Wall Street’s major indexes to confirm a new bull market.
- Dow and S&P 500 both fell more than 0.7% overnight, dragging by the financial and industrial shares, which have been among stocks that have surged in recent weeks on hopes of an improved economic outlook.
- No major policy announcements are expected from the Fed’s two days meeting, but the U.S. central bank will issue its first economic projections since December. Fed said on Tuesday it will publish the results of its annual bank health exams, known as “stress tests,” on June 25 at 4:30 p.m. EDT.
Market Views
- Asian markets were mixed on Wednesday morning after most U.S. stocks pared gains made during their recent rally, although the Nasdaq benchmark reached its second straight day at a record high as oil prices rose. Hang Seng index fell 66 points while Nikkei 225 index rose 24 points.
- China’s inflation data for May missed expectations as its producer price index for May fell 3.7% from a year earlier. Its consumer price index rose 2.4% year-on-year in May, less than a 2.7% increase estimated by economists in a Reuters poll.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 27,446
Target price:
Protective stop:
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. The next resistance comes in at 28,380. The 20EMA is still rising at the moment, confirming the bullish trend. Stochastic is at the overbought region but is still strong at the moment. MACD is also bullish.
Trading Idea
Wait for better trading idea.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 25,107
Target price:
Protective stop:
Outlook
Price struggled to stay above the upper end of the consolidation zone that ranged from 23,400 to 25,000 for the past three days. We would like to see this index close above 25,210 to confirm the bullish trend and see this index testing the overhead gap resistance at 25,780. Otherwise, price could move lower to the lower end of the consolidation range at 23,400 again. Stochastic could be turning down. MACD is bearish but a bullish crossover was seen.
Trading Idea
Buy at 25,100 for 25.750 with a stop below 24,800
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 10,012
Target price :
Protective stop:
Outlook
This index has created a new intraday all-time high at 10,007 last night. It also broke out from the Rising Wedge chart pattern. The next potential upside lies at 10,410. The 20EMA that coincides with the lower trendline is acting as support at 9560. 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: 3225
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. The next resistance lies at 3397 and we see this index rising to the next resistance. Stochastic is at the overbought region but MACD is bullish at the moment.
Trading Idea
Wait for better trading idea.
