CFD Indices – US Indices Lifted By Optimism of Fresh Stimulus

Market News

U.S. stocks ended in positive territory on Thursday as fresh stimulus hopes buoyed investor sentiment toward the end of a session fraught with worries over mounting shutdowns and layoffs linked to spiralling COVID-19 infection rates. Dow Jones rose 44 points, S&P 500 gained 14 points and Nasdaq Composite advanced 103 points.

U.S. Treasury Secretary Steven Mnuchin said on Thursday that key pandemic lending programs at the Fed would expire on Dec. 31, putting the outgoing Trump administration at odds with the central bank and potentially adding stress to the economy as President-elect Joe Biden organizes his administration.

The announcement could signal potential trouble for the incoming Biden administration. Although the programs were not used extensively, Fed officials felt their presence reassured financial markets and investors that credit would remain available to help businesses, local agencies and even non-profits through the pandemic downturn.

Market Views

Asia Pacific markets were mixed on Friday morning after U.S. Treasury Secretary Steven Mnuchin called for an end to coronavirus pandemic relief for struggling businesses, sparking a rare clash between the central bank and Treasury. Hang Seng index gained 104 points while Nikkei 225 index slid 167 points.

Japan aims to expand a major regional free trade pact called the CPTPP, Prime Minister Yoshihide Suga said on Friday, potentially catering for China’s and Britain’s interest in joining the deal. He also reiterated his key policy priorities – digital transformation and reduction of greenhouse gases.

Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 29,253
Target price:
Protective stop:

Outlook
Price is now trading within a small range of 28,960-30,090. It is going to retest this lower range of the resistance-turned-support zone again, where the 20EMA is also comes in around this level at 28,840. As long as price can stay above this support zone, there is still chance for this index moving higher. A violation of this support zone will hint for deeper correction. Stochastic is at the overbought region now. MACD is bullish but a bearish crossover could be likely.

Trading Idea
Wait for better trading idea

Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation : Long @ 26,150
Last : 26,427
Target price: 26,750
Protective stop: 26,150

Outlook
This index has been maintaining above the gap support that was created on 9 Nov, which is also near to the Fibonacci 38% correction point of Oct-Nov 20’s price swing. The 20EMA is also comes in at this level at 3514. We could see price moving higher towards the previous high of 3674 if this support zone holds. Stochastic is moving lower now but MACD is still bullish.

Trading Idea
Buy 26,150 for 26,750 with a stop below 25,930. Order was filled on 13 Nov. Shift stop to 26,150.

Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 11,980
Target price :
Protective stop:

Outlook
The recent rally of this index was halted by the Fibonacci 62% correction point of 9-10 Nov’s decline at 11,952. If price cannot break through 12,070, a possible pullback could be expected to retest 11,510 again, if price breaks below the 20EMA support at 11,800. Stochastic is relatively weak at the moment, and there is a bearish crossover. MACD is still bullish but there is a divergence warning that hint for potential top.

Trading Idea
Buy 11,850 for 12,050 with a stop below 11,700.