Market News
- S&P 500 rallied on Tuesday to finish higher and secure its biggest quarterly percentage gain in more than two decades as improving economic data bolstered investor beliefs that a stimulus-backed rebound for the U.S. economy was on the horizon.
- The highest ranking U.S. medical official, Anthony Fauci, forecast dire consequences for the world’s largest economy if cities did not re-embrace masks and social distancing measures as COVID-19 cases surged around the country. He said there was no guarantee that U.S. will have an effective COVID-19 vaccine and warned the virus spread “could get very bad”.
- U.S. Treasury Secretary Steven Mnuchin and Fed Chair Jerome Powell on Tuesday pledged to do more for the U.S. economy as it battles the enormous fallout from the virus outbreak. That assurance helped push Wall Street higher to close out the best quarterly rebound in nearly two decades.
Market Views
- Asian stocks were mixed on Wednesday morning as optimism about a global economic recovery from the pandemic jousted with signs in U.S. the health crisis may not yet be past its peak. Hang Seng index rose 125 points while Nikkei 225 index fell 41 points.
- Results of a private survey released on Wednesday showed China’s manufacturing activity expanded and beat expectations in June, hitting its highest level since December 2019. Wang Zhe, senior economist at Caixin Insight Group said the manufacturing sector continued to expand, as most of the country had the epidemic under control and the economy continued to recover.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 25,736
Target price:
Protective stop:
Outlook
This index has been falling since 17 Jun and has tested the key support at previous low at 24,560, which coincided with the Fibonacci 62% correction point. Price rebounded from 24,560 and if price can sustain above this support, a move to 25,770 is likely. A violation of 24,560 low would hint for more downside to 22,790. Stochastic could be moving up. MACD is bullish and a bullish crossover is likely.
Trading Idea
Wait for better trading idea.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation : Short
Last : 24,391
Target price: 23,730
Protective stop: 24,850
Outlook
Last Wednesday, a bearish Engulfing candlestick price pattern was formed at the upper boundary of the consolidation zone that ranged from 23,400 to 25,000. We expect this index to continue to move within this consolidation range and a test of the low of range boundary at 23,400 is likely. Stochastic is still moving lower at the moment. MACD is bullish but a bullish crossover was not seen yet.
Trading Idea
Sell 24,570 for 23,730 with stop above 24,850 was filled on 29 June.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 10,147
Target price :
Protective stop:
Outlook
This index rebounded from the 20EMA support again, and is now moving higher. As long as price can sustain above the 20EMA at 9922, we are likely to see this index testing its all-time high at 10,308 again. A close below the 20EMA will target 8905. Stochastic is turning up and a bullish crossover is likely. MACD is still bullish but there was a bearish crossover.
Trading Idea
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 3094
Target price:
Protective stop:
Outlook
This index has recorded an all-time high of 3232 on 8 Jun and has been declining since then. It has rebounded near the key support of 2936, and is hovering around the flat 20EMA. As long as price can hold at this support at 2995, price could retest its all-time high again. A violation of this support could hint for deeper correction. Stochastic could be turning up. MACD is bullish and a bullish crossover is likely.
Trading Idea
Buy at 3070 for 3160 with stop below 3030
