Market News
- Wall Street closed higher and the Nasdaq reached an all-time closing high on Thursday as investors headed into their long holiday weekend buoyed by a record surge in payrolls, which provided assurance that the U.S. economic recovery was well under way.
- U.S. economy added 4.8 million jobs in June according to the Labour Department, 1.8 million more than analysts expected, setting a second consecutive record. Massive rehiring also sent the unemployment rate down to 11.1%. The labour market has still recovered only a fraction of the 22 million jobs lost in the March-April plunge.
- Investor focus is shifting to worsening strains between China and the United States. More than 75 U.S. members of congress sent a letter to the President Donald Trump urging him to take make a formal determination on whether China’s treatment of Muslim Uighurs and other groups constitutes an atrocity.
Market Views
- Asian stocks were higher to track a firmer Wall Street session on Friday morning after strong U.S. jobs data although growing Sino-U.S. tensions and a worrying surge in coronavirus cases is likely to cap gains. Hang Seng index rose 107 points and Nikkei 225 index gained 74 points.
- U.S. State Department also warned American companies including Amazon, Walmart and Apple to check their supply chains and ensure they are not doing business with entities linked to alleged human rights abuses against Uighurs in China’s Xinjiang province.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 25,832
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 is moving up. MACD is bullish and there is a bullish crossover.
Trading Idea
Wait for better trading idea.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 25,303
Target price:
Protective stop:
Outlook
This index has been moving within the range of 23,400 to 25,000. It is supported by the 20EMA and finally managed to penetrate above the upper end of the boundary. However, we would like to see a firm close above the upper boundary for at least 3 days to confirm the breakout. Stochastic is turning up. MACD is bullish and a bullish crossover was seen.
Trading Idea
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 10,357
Target price :
Protective stop:
Outlook
This index rebounded from the 20EMA support, and is now moving higher after a new all-time high of 10,433 was created last night. The next resistance lies at the Fibonacci 127% projection level at 11,300. The 20EMA will be acting as support at 9975. Stochastic has turned up again and a bullish crossover was seen. MACD is still bullish and there is also a bullish crossover.
Trading Idea
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 3133
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. As long as price can hold at this support at 2995, price could retest its all-time high of 3232 again. A violation of this support at 2995 could hint of a deeper correction. Stochastic could be turning up. MACD is bullish and there is a bullish crossover.
Trading Idea
Buy at 3125 for 3185 with stop below 3095
