Market News
- S&P 500 ended slightly lower on Thursday after briefly trading above its record closing high level for a second day, and the Dow also fell in the wake of a disappointing forecast from Cisco Systems whose share fell 11.2%. Nasdaq was the only gainer among the three major indexes of the day, closing 30 points higher.
- Initial claims for state unemployment benefits decreased to 963,000 for the week ended Aug. 8, the lowest level since mid-March. But the expiration of a $600 weekly jobless supplement at the end of July likely contributed to the decline.
- Investors continue to hold on to hopes Democrats and the White House can reach agreement on a stimulus package to help the economy recover. Unemployment benefits have been a sticking point in their talks.
Market Views
- Asian shares were largely off to flat start on Friday as markets weighed a pause in Wall Street’s multi-month stock rebound and awaited the release of Chinese economic data later in the session. Nikkei 225 index rose 25 points while Hang Seng index fell 38 points.
- Benchmark U.S. Treasury yields surged to seven-week highs on Thursday after the Treasury sold a record amount of 30-year bonds to weak demand. Ten-year yields were last at 0.718%, after earlier reaching 0.727%, the highest since June 24.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 27,930
Target price:
Protective stop:
Outlook
This index has continued its upward momentum and has been rising higher after breaking out from the triangle pattern that started since 20 Jun. The 20EMA is rising at the moment, confirming the bullish trend, and also acting as the first layer of support at the moment at 27,160. The triangle target lies at 29,490. Stochastic is at the overbought region and is turning down. MACD is bullish at the moment.
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 25,234
Target price:
Protective stop:
Outlook
Price rebounded from its previous low support on Monday, and has broken above the 20EMA resistance point. There is a divergence warning given from the MACD that hint of a potential reversal. This index has penetrated above 25,330, but we would like to see price stay firm above this level in order to move higher. A violation of 24,240 would bring price lower towards 23,510. Stochastic is still moving up. MACD is bearish but had a bullish crossover.
Trading Idea
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation : Long
Last : 11,207
Target price : 11,250
Protective stop: 10,780
Outlook
There was a price correction that brought the index lower to test its 20EMA support at 10,860 from its all-time high of 11,291. We see a rebound at this point, and price is going to test its all-time high again. However, a break of this support zone will hint for deeper correction at 10,310. Stochastic could be rising at the moment. MACD is bullish and had a bullish crossover
Trading Idea
Buy 10,910 with a stop below 10,780 for 11,250. Buy order was filled on 12 Aug
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 3377
Target price:
Protective stop:
Outlook
This index has been rising to a new all-time high of 3387 on Wednesday. Price was capped by this high for three consecutive days. Price needs to penetrate above this high for further upside to 3416. The 20EMA is still rising at the moment, and is providing support at 3302. Stochastic is falling but is still strong at the moment. MACD is bullish, but could be forming a divergence warning.
Trading Idea
Wait for better trading idea
