CFD Indices – Technology Stocks Pushed U.S. Indices Higher

Market News

  • Wall Street advanced on Friday pushed higher by technology stocks, with the S&P 500 on track for its sixth record closing high since confirming a bull market on Aug. 18. The gains also put the Nasdaq on a course for an all-time closing high and pushed the blue-chip Dow into positive territory for the year.
  • Economic data released before the bell showed American consumers, who account for about 70% of the U.S. economy, increased their spending more than expected in July but the savings rate, a barometer of consumer uncertainty, remained elevated well above pre-pandemic levels.
  • Energy stocks had the largest percentage gain among the major S&P sectors, rising 1.3% after Hurricane Laura passed through the Gulf region without causing widespread damage and oil rigs and refineries began to restart operations.

Market Views

  • Asian shares notched a 29-month high on Monday morning as investors wagered monetary and fiscal policies globally would stay super stimulatory, while an upbeat reading on China’s service sector augured well for continued recovery there. Hang Seng index rose 355 points and Nikkei 225 index surged 447 points.
  • Attention was now on a host of Federal Reserve officials that are set to speak this week, kicking off with Vice Chair Richard Clarida later Monday as they put more flesh on the bank’s new policy framework

Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 28,778
Target price:
Protective stop:

Outlook
A Spinning Top candlestick pattern was formed last 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 28,780 on Friday. 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 : 25,860
Target price:
Protective stop:

Outlook
Price rebounded after testing the key rising trendline support that formed since Mar 20 last Thursday. It is now testing 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 25,750 for 26,300 with stop below 25,450

Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 12,086
Target price :
Protective stop:

Outlook
This index has risen to a new all-time high at 12,093 today. As there is still no divergence warning given from the MACD, and there is also no prior resistance that will cap the rally, there is high chance that this index will continue rising towards 12,870. Stochastic is still strong and is rising at the overbought zone at the moment. MACD is also strong and bullish with both lines far above the zero line.

Trading Idea
Wait for better trading idea


S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 3524
Target price:
Protective stop:

Outlook
Price has been rising strongly after breaking above its previous high at 3399, as it is trading far above the 20EMA. It is going to test the overhead Fibonacci 200% projection at 3529. If price surpass this level, we could peg the target higher at 3710. Stochastic is still strong at the overbought region. MACD is also bullish and strong, as both of the MACD’s lines are far above the zero line

Trading Idea
Wait for better trading idea

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