- Stocks on Wall Street hit record levels on Thursday with the Nasdaq surging 2.6% as investors bet a Democrat-controlled Congress will deliver more stimulus spending to help the U.S. economy overcome a steep pandemic-induced downturn.
- U.S. House Speaker Nancy Pelosi urged Trump’s immediate removal from office. President-elect Joe Biden accused Trump of fomenting violence and said Wednesday was one of the darkest days in U.S. history. Joe Biden will nominate Rhode Island Governor Gina Raimondo as his Commerce Department secretary and former union official and Boston Mayor Marty Walsh as Labour secretary.
- The number of Americans filing for jobless benefits unexpectedly dipped last week, while staying elevated, a Labour Department report showed, with the job market recovery appearing to stall as the COVID-19 pandemic threatens to overwhelm the country.
- Asian markets surged on Friday morning, with Japan hitting a three-decade high as investors looked beyond rising coronavirus cases and political unrest in U.S. and bet on an economic recovery later in the year. Hang Seng index gained 312 points and Nikkei 225 index advanced 475 points.
- Oil prices edged higher on Friday, hovering near 11-month highs hit the previous day, as Saudi Arabia’s pledge to make voluntary cuts to its output continued to buoy the mood in the market though worries over slower fuel demand capped gains.
Dow Jones Index
(CFD Symbol: US30)
Last : 31,171
This index has been consolidating within an ascending channel, and last night, it managed to breakout from this channel. The 20EMA is still rising and is acting as support at 30,400. The next resistance lies at 32,570. Stochastic is still strong as it has been trading at the overbought region for an extended period. MACD remains bullish and there is bullish crossover.
Buy 30,900 for 31,450 with a stop below 30,550.
Hang Seng Index
(CFD Symbol: HK50)
Last : 27,842
This index has broken out from the descending channel on 29 Dec 20, which is a sign that price will resume its upward momentum. It penetrated its previous high of 26,768 on 30 Dec 20, strengthening the bullish trend. We could see this index moving higher towards the target price zone of 28,990-29,120 on a medium-term basis. Stochastics is at the overbought zone while the MACD is bullish and is moving higher.
Buy 27,250 for 28,150 with a stop below 27,050.
Nasdaq 100 Index
(CFD Symbol: USTec)
Recommendation : Short @ 12,800
Last : 12,968
Target price : 12,450
Protective stop: 13,000 Triggered
This index rebounded and created a new all-time high at 12,968 last night being supported by the rising 20EMA support. The next resistance lies at 13,060, which is the Fibonacci 161% projection level of October 2020’s decline. Stochastic is falling now. MACD is still bullish but there is divergence warning.
Sell 12,800 for 12,450 with a stop above 13,000. Entry order was filled on 7 Jan.
Stop was triggered on 8 Jan
S&P 500 Index
(CFD Symbol: US500)
Recommendation: Short at 3730
Target price: 3660
Protective stop: 3785 Triggered
This index has been supported by the rising 20EMA. It has penetrated above the Fibonacci 161% projection level of October 2020’s decline. The next resistance comes in at Fibonacci 200% projection level at 3866. Stochastic is at the overbought region. MACD is still bullish and there is a bullish crossover.
Sell 3730 with a stop above 3785 for 3660. Entry and Stop was triggered on 7 Jan.