Market News
- Wall Street closed higher on Tuesday as the prospect of additional stimulus and a record jump in retail sales suggested the U.S. economy could bounce back sooner than expected, five months into its pandemic-inflicted recession. The Dow surged 526 points, S&P 500 rose 58 points and Nasdaq Composite gained 169 points.
- Amid a resurgence of new COVID-19 cases in China and the United States, along with unabated progression of the pandemic in Latin America and elsewhere, a UK-led drug trial showed low doses of generic steroid drug dexamethasone reduced COVID-19 death rates among the most severe cases.
- The upbeat retail sales data helped push S&P 500’s Retail index 2.3% higher, led by Nordstrom and Kohls Corp, which surged by 12.9% and 9.0%, respectively. Much stronger than expected homebuilder sentiment data helped home improvement retailer Home Depot provide among the biggest boosts to the blue-chip Dow.
Market Views
- Stocks in Asia were little changed in Wednesday morning as the International Monetary Fund said the global economy is set to see a more significant contraction than it previously forecast. Hang Seng index was down 7 points and Nikkei 225 index fell 176 points.
- IMF Chief Economist Gita Gopinath said in a Tuesday blog post that the forthcoming June World Economic Outlook Update is expected to show negative growth rates even worse than previously estimated. The fund also said the current crisis is unlike anything the world has seen before.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 26,124
Target price:
Protective stop:
Outlook
The sharp correction was halted at the key Fibonacci 62% retracement point, which is also the gap resistance-turned-support zone. Price rebounded from this support zone and has now moved above the rising 20EMA. Stochastic is still strong and could be turning up. MACD is also bullish at the moment. We could see this index testing its high of 27,608 again as long as the low at 24,560 is sustained.
Trading Idea
Buy 25,800 for 26,900 with a stop below 25,500
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 24,256
Target price:
Protective stop:
Outlook
Price has fallen inside the consolidation zone that ranged from 23,400 to 25,000 and we expect this index to move within this range, until either end of the range boundary is broken for the next directional move. The 20EMA is currently flat, suggesting that price is moving in sideways manner. Stochastic is turning down at the moment. MACD is bearish and a bearish crossover was seen
Trading Idea
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 9936
Target price :
Protective stop:
Outlook
The three days’ price decline was halted when this index hit the 20EMA, where it had provided support to the price. A bullish engulfing pattern was formed last night, suggesting a potential bottom. We are likely to see this index tests its all-time high at 10,155. Stochastic is falling at the moment. MACD is still bullish but a bearish crossover was seen.
Trading Idea
Buy 9810 for 10,150 with a stop below 9640
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 3112
Target price:
Protective stop:
Outlook
This index was supported by the key resistance-turned-support zone at 2965. Last night, it ended the day with a bullish Engulfing candlestick pattern which hints of a potential low. Price moved above the rising 20EMA as well. We could see this index moving higher towards its all-time high at 3232 again. Stochastic is falling at the moment. MACD is still bullish at the moment but there is a bearish crossover.
Trading Idea
Wait for better trading idea.
