- S&P 500 edged higher on Tuesday, turning positive for the year, as investors rotated into economically sensitive cyclical stocks, optimistic that Washington will deliver a new round of stimulus to sustain the U.S. economic recovery from a pandemic-induced recession. Nasdaq closed 86 points lower.
- While U.S. equity valuations stand at their highest level since the dot-com boom, the flight to large-cap, tech-related companies reflects caution rather than euphoria, said Quincy Krosby, chief market strategist at Prudential Financial in Newark, New Jersey.
- Lawmakers on Capitol Hill wrestled to craft a new stimulus package with less than two weeks until the expiry of extended unemployment aid for millions of Americans due to the new infections of COVID-19 surged in the United States. The European Union also reached an agreement on a massive $857 billion pandemic recovery plan at the conclusion of the five-day summit.
- Asia shares were mixed on Wednesday morning after U.S. President Trump’s comments regarding the country’s surge in novel coronavirus cases outweighed a slight rally on Wall Street. Hang Seng index fell 60 points and Nikkei 225 index slid 56 points.
- The pandemic has not shown signs of abating in recent weeks, with the outbreak surging across the U.S. and reaching record highs in new cases and deaths. Worldwide, the number of cases stands at over 14 million with more than 600,000 deaths, according to data from Johns Hopkins University.
Dow Jones Index
(CFD Symbol: US30)
Last : 26,898
This index managed to form a Hammer candlestick and rebound from the gap support at 26,620 on Monday. As long as price does not go lower the Hammer candlestick’s low, there is chance for this index to move higher and test its all-time high at 27,608, if it can surpass 27,180. The 20EMA is now acting as support at 26,320. Stochastic is turning down and there is a bearish crossover. MACD is still bullish at the moment.
Sell 26,600 for 26,180 with a stop above 26,850. Stop was triggered on 21 July.
Hang Seng Index
(CFD Symbol: HK50)
Last : 25,538
This index has rebounded from the upper end of the key blue consolidation zone, which is also the Fibonacci 38% correction point. A bullish Engulfing was seen on Monday, and price gapped and closed higher yesterday. There is chance for price to move higher again if it able to maintain above the blue consolidation zone. Stochastic could be turning up. MACD is still bullish but there was a bearish MACD crossover.
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Last : 10,884
Target price :
Last night, price hit exactly 11,071, which was the previous all-time high, and closed lower. The rising 20EMA is now acting as support at the moment at 10,543. Price will need to stay above 20EMA to invalidate the possibility of the potential Double Top reversal pattern. Stochastic is still strong and could be turning up again. MACD is still bullish at the moment.
Buy at 10,650 for 11,050 with a stop below 10,350
S&P 500 Index
(CFD Symbol: US500)
This index broke above its previous high and created a new all-time high at 3281 last night. The rising 20EMA is acting as support at the moment at 3180. The next resistance lies at 3313, which is the Fibonacci 127% projection level. Stochastic is turning up again and is near the overbought region. MACD is bullish and there was a bullish crossover.
Wait for better trading idea