Market News
- S&P 500 and the Dow advanced but the Nasdaq closed lower on Thursday as investors digested the U.S. Federal Reserve’s new strategy to adopt an average inflation target and restore the United States to full employment, as well as a promising development in the fight to contain the coronavirus pandemic.
- The financial sector provided the biggest boost to the S&P 500 and the Dow, pushing the former to its fifth straight record closing high and the latter within a hair’s breadth of reclaiming positive territory for the year so far, as the Fed’s new strategy sent Treasury yields higher.
- Tesla shares continued their meteoric rise on Thursday, scoring yet another record high and further expanding the distance between the Silicon Valley electric carmaker and its traditional auto industry rivals.
Market Views
- Asian equities were higher on Friday morning after U.S. stocks scaled new peaks for a third straight day and bond yields surged on the Federal Reserve’s average-inflation strategy, as well as a promising development in curbing the coronavirus pandemic. Hang Seng index advanced 157 points and Nikkei 225 index rose 83 points.
- Fed Chair Jerome Powell announced Thursday a major policy shift by the U.S. central bank to “average inflation targeting.” That means the Fed will allow inflation to run “moderately” above the central bank’s 2% goal “for some time” after periods when it has run below that objective.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 28,626
Target price:
Protective stop:
Outlook
A Spinning Top candlestick pattern was formed on Tuesday, raising concern of the possible pullback, given that MACD is giving potential divergence warning. However, there is no follow-through candle the next day, and price has penetrated above the Spinning Top’s high and created a new all-time high at 28,637 last night. It could be heading towards the next resistance at Fibonacci 161% projection level at 29,480. Stochastic is still strong at the moment and MACD is still bullish.
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 25,500
Target price:
Protective stop:
Outlook
Price rebounded after testing the key rising trendline support that formed since Mar 20 last Thursday. It is now trading near to its overhead key resistance point at 25,830, which was previously a high resistance and also the Fibonacci 62% correction point. This index has to surpass this resistance for a test of its high, else, we would see price moving lower to test the rising trendline again. Stochastic is rising at the moment and MACD has turned bullish.
Trading Idea
Buy 25,300 for 25,830 with stop below 25,080.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 11,972
Target price :
Protective stop:
Outlook
This index has been rising steadily along with the rising 20EMA which is acting as support at the moment. A new all-time high of 12,049 was created last night, but price ended the day with a potential Spinning Top candlestick pattern. Do watch out for tonight’s price movement as if there is a follow-through candle, we are likely to see a price correction; else, we could see price moving higher towards the next resistance at 12,870. Stochastic is still strong and is rising at the moment. MACD is bullish
Trading Idea
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 3502
Target price:
Protective stop:
Outlook
Price has been rising steadily along with the rising 20EMA which is acting as support at 3390. It penetrated the Fibonacci 161% projection point of 3416 and is still moving higher. The next potential target lies at Fibonacci 200% projection at 3529. Stochastic is still strong at the overbought region. MACD is also bullish and there is a bullish crossover.
Trading Idea
Wait for better trading idea
