CFD Indices – J&J Vaccine Trial Results Dragged US Market Lower

Market News

  • U.S. stock indexes dropped, closing out the Friday session with the biggest weekly fall since October, as investors gauged the ramifications of Johnson & Johnson’s COVID-19 vaccine trial results, while a standoff between Wall Street hedge funds and small, retail investors added to volatility.
  • Worries of a short squeeze that began earlier in the week resurfaced after an army of retail investors returned to trade shares in stocks such as GameStop Corp and Koss Corp, which shot higher after brokers including Robinhood eased some of the restrictions they had placed on trading.
  • The first known U.S. cases of the South African COVID-19 variant, found to be partly resistant to current vaccines and antibody treatments, was detected in South Carolina on Thursday.

Market Views

  • Asian markets rallied on Monday morning as Wall Street continued to struggle with doubts about vaccine rollouts and economic recovery, while silver surged as newly empowered retail investors turned speculative eyes to precious metals. Hang Seng index rose
  • Data showed U.S. labour costs rose more than expected in the fourth quarter amid a jump in wages, supporting views that inflation could accelerate this year, while another report showed U.S. consumer spending fell for a second straight month in December.

Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 30,069
Target price:
Protective stop:

Outlook
Price was capped by its all-time high resistance of 31,286, and has been moving lower since then. It broke below the 20EMA support and is heading lower towards 29,270. Both Stochastic and MACD have given divergence warning that hint for potential top. Stochastic is falling now and is near to oversold region. MACD is moving lower after a bearish crossover.

Trading Idea
Buy 29,650 for 30,500 with a stop below 29,300.

Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 28,767
Target price:
Protective stop:

Outlook
This index is now undergoing a price correction after being resisted by the resistance zone of 30,180. Price appears to be supported by the Fibonacci 62% correction point. It could be forming a potential Harami reversal candlestick as well. Stochastic is falling now but is still strong. MACD is also bullish at the moment.

Trading Idea
Buy 28,050 for 28,950 with a stop below 27,750.

Nasdaq 100 Index
(CFD Symbol: USTEC)
Trend :
Recommendation :
Last : 12,945
Target price :
Protective stop:

Outlook
A huge Bearish Engulfing reversal candlestick was formed after price created a new all-time high at 13,609. It has violated the 20EMA support with a bearish candlestick last Friday. Price could head towards 12,600. Stochastic is falling now while MACD remains bullish. There is a bearish MACD crossover.

Trading Idea
Wait for better trading idea

S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 3723
Target price:
Protective stop:

Outlook
This index has been moving lower after being resisted at the all-time high of 3869. Price has moved below the 20EMA support. It could be heading lower towards the Fibonacci 38% correction point at 3626. Stochastic is falling at the moment but MACD is still bullish.

Trading Idea
Buy 3660 with stop below 3640 for 3760

Related Posts

Leave a Reply

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