CFD Indices – US Indices May Have Turned The Corner

Market News

  • Wall Street rallied to close sharply higher on Monday as investors sought bargains among sectors hardest-hit by the coronavirus recession, now limping toward its ninth month. Energy and financials sectors, which suffered the most bruising blows from the economic shutdown, enjoyed the largest percentage gains.
  • U.S. House of Representatives Speaker Nancy Pelosi said on Monday that Democratic lawmakers unveiled a new, $2.2 trillion coronavirus relief bill, which she said was a compromise measure that reduces the costs of the economic aid.
  • U.S. consumer confidence and home price data are also due later. Upcoming U.S. economic data should help show how well the country is positioned to rebound from pandemic lockdowns, and how necessary more stimuli will be.

Market Views

  • Asian markets were slightly lower on Tuesday morning, despite the overnight’s gains in Wall Street; building on newfound momentum after bargain hunters helped a recovery in U.S. markets in the wake of last week’s selloff. Hang Seng index fell 57 points and Nikkei 225 index slid 77 points.
  • Shares in Asia Pacific have been buoyed by positive signs around China’s economic recovery, although the coronavirus pandemic continues to wreak economic havoc globally and raise concern about high valuations.

Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 27,661
Target price:
Protective stop:

Outlook
The price decline was halted just below the Fibonacci 50% correction point but above the Fibonacci 62% point. Price is now testing the overhead 20EMA resistance, which is also the declining trendline. A firm close above this trendline and 20EMA at 27,600 tonight will be crucial for this index to move higher towards its previous high. Stochastic is near to the oversold region and is turning up, suggesting for a potential rebound. MACD is still bearish but there is a bullish crossover.

Trading Idea
Wait for better trading idea


Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 23,329
Target price:
Protective stop:

Outlook
Price breached the low of 24,246 and has been moving lower since that day. It is now sitting at the Fibonacci 161% price projection level at 23,180. This projection level also coincides with the gap zone that created on 1st June. As long as 23,180 hold, we could see a rebound towards the 20EMA resistance at 24,070. Stochastic is at the oversold region and is turning up. MACD has turned bearish and is still declining.

Trading Idea
Wait for better trading idea

Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 11,421
Target price :
Protective stop:

Outlook
The price decline was halted by the Double Bottom low of 10,675. This index has rebounded from this low, and has moved above the 20EMA last night. As long as price can stay above the 20EMA for three consecutive days, this could increase the validity of the 20EMA breakout, and would target for 11,780. Stochastic is rising from the oversold region. MACD has turned bearish but there is a bullish crossover.

Trading Idea
Wait for better trading idea


S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 3365
Target price:
Protective stop:

Outlook
Price has been rebounding after nearly hitting the Fibonacci 62% correction point. It is now going to test its overhead declining trendline resistance at 3374. A three consecutive close above 3374 would confirm this breakout and target for 3442. Stochastic is rising from the oversold region now. MACD has turned bearish at the moment but a bullish crossover is likely

Trading Idea
Buy 3350 for 3420 with a stop below 3320

Related Posts

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.