- Wall Street peaked overnight, with both the S&P 500 and Nasdaq Composite closing at record highs, pushed upward by continued optimism about economic stimulus to counteract the COVID-19 pandemic promised by newly inaugurated U.S. President Joe Biden.
- Republicans in the U.S. Congress have indicated they are willing to work with President Joe Biden on his administration’s top priority, a $1.9 trillion U.S. fiscal stimulus plan, though some are opposed to the price tag.
- The number of Americans filing new applications for unemployment benefits decreased modestly last week as the COVID-19 pandemic tears through the nation, raising the risk that the economy shed jobs for a second straight month in January.
- Asian shares eased from record highs on Friday morning as investors took some money off the table after a recent rally that was driven by hopes a massive U.S. economic stimulus plan by incoming President Joe Biden will help temper the COVID-19 impact. Hang Seng index slipped 405 points and Nikkei 225 index slid 109 points.
- Japanese shares retreated from a 30-year peak on Friday, as investors refrained from placing big bets ahead of the corporate earnings season while some locked in profit after the recent rally in global equities.
Dow Jones Index
(CFD Symbol: US30)
Recommendation : Short @ 30,950
Last : 31,060
Target price: 30,350
Protective stop: 31,290 Triggered
Last night, this index penetrated its previous high and created a new all-time high at 31,286. However, price closed with a Doji indecision candlestick. It has been capped by this high on several occasions and it has to break through this resistance for more upside. MACD is bullish now but is giving potential divergence warning that hint of a potential high. Stochastic has been staying at overbought region for extended periods.
Sell 30,950 for 30,350 with a stop above 31,290. Order was filled on 19 Jan. Stop was triggered on 21 Jan.
Hang Seng Index
(CFD Symbol: HK50)
Last : 29,516
This index almost hit our second target price zone of 30,170-30,350 yesterday. There is a price decline today and if price close lower below 29,550, we are likely to see a correction for this index. The first support comes in at the support zone of 28,990-29,120 and once this support is violated, we can expect further deeper pullback towards 28,530. Stochastic is strong and bullish at the overbought zone. MACD is also strong and bullish.
Sell 29,540 for 29,020 with a stop above 29,750.
Nasdaq 100 Index
(CFD Symbol: USTEC)
Recommendation : Short @ 12,850
Last : 13,357
Target price : 12,400
Protective stop: 13,100 Triggered
An all-time high at 13,432 was created last night after being supported by the rising 20EMA support. There is chance for price moving higher towards the next resistance at 13,560. Stochastic is rising at the moment. MACD is still bullish and there is a bullish crossover.
Sell 12,850 with a stop above 13,100 for 12,400. Entry was filled on 19 Jan. Stop was triggered on 21 Jan.
S&P 500 Index
(CFD Symbol: US500)
This index has created an all-time high at 3866 last night. The 20EMA is rising and is providing support at 3780, hinting at the bullish trend now. The next resistance comes in at 3960. Stochastic is moving higher now. MACD is still bullish but could hint for potential divergence warning.
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