- S&P 500 and Nasdaq Composite indexes closed at record highs on Tuesday, with investors betting a COVID-19 vaccine will be available soon, and more confident about a speedy economic recovery following upbeat Chinese factory data. Dow Jones gained 185 points as well.
- Pfizer jumped almost 3% after the drugmaker and Germany’s BioNTech sought emergency approval of their vaccine candidate from the European regulator. The partners are neck-and-neck with rival Moderna, which also applied for emergency approval from the European regulator.
- U.S. legislators also indicated progress on economic stimulus. Top U.S. Senate Republican Mitch McConnell said on Tuesday that Congress should include a new coronavirus stimulus in a $1.4 trillion spending bill aimed at heading off a government shutdown in the midst of a pandemic.
- Asian shares gave up early gains from a strong Wall Street lead on Wednesday morning, as some investors booked profits on a stellar run to record highs, but hope for additional U.S. economic stimulus and a coronavirus vaccine kept market sentiment well supported. Hang Seng index was down 7 points and Nikkei 225 index fell 31 points.
- The Trump administration late on Tuesday released the names of more than 10 million businesses and individuals that took pandemic aid, providing more transparency for the programs which officials say have been plagued by fraud and abuse.
Dow Jones Index
(CFD Symbol: US30)
Recommendation : Short @30,170
Last : 29,694
Target price: 29,600 Filled
Protective stop: 30,170
Price is now trading within the zone of 29,160-30,090, which is the 20EMA and the resistance-turned-support zone. There is potential divergence warning given from the MACD that warned for a potential top. If price breaks below 29,160, we could see price moving lower towards 28,550. Stochastic is at the overbought region. MACD remains bullish and there is a bearish crossover.
Trading sell at 30,170 for 29,600 with a stop above 30,270. Entry was filled on 25 Nov. Shift stop lower to cost at 30,170. Profit order was filled on 30 Nov.
Hang Seng Index
(CFD Symbol: HK50)
Last : 26,511
Price is now moving within a consolidation range. It is being resisted at 27,070 for the third times, and it will need to break above this resistance for more upside. A violation of 26,615 would suggest a correction towards the gap support zone at 25,930. Stochastic is falling from the overbought region. MACD is still bullish now but there is a bearish crossover.
Buy 26,200 for 27,100 with a stop below 25,900.
Nasdaq 100 Index
(CFD Symbol: USTec)
Last : 12,427
Target price :
This index has been moving higher after being supported by the rising 20EMA. It tested its overhead resistance zone and created a new all-time high at 12,512 last night. We would like to see price stay above this resistance zone for at least three consecutive days to confirm the breakout and more upside. Stochastic is at the overbought region but a bearish crossover is likely. MACD is still bullish but is also relatively weak, and could be forming potential divergence warning.
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Price tested the previous resistance high and created a new all-time high at 3678 last night. The 20EMA is still rising, suggesting the uptrend right now. It has to stay above the resistance zone for at least three consecutive days to confirm the breakout. Stochastic is falling now. MACD is still bullish but there is a bearish crossover and also the divergence warning.
Wait for better trading idea