- Dow Jones notched a record closing high on Tuesday as cyclical sectors gained on the prospect of more fiscal aid to lift the U.S. economy from a coronavirus-driven slump, while the Nasdaq dipped and concerns over rising interest rates kept the S&P 500 little changed.
- President Joe Biden vowed during a prime-time televised town hall on Tuesday to accelerate the country’s vaccination program and said teachers should be moved closer to the front of the line for inoculations to allow more schools to reopen.
- U.S. Treasury yields hit one-year highs on Wednesday, lending support to the dollar but pressuring lofty valuations for stocks, as investors reckoned that a stimulus-fuelled global recovery will eventually bring rising inflation.
- Stocks in Asia-Pacific were mixed in Wednesday morning trade session following an overnight dip for the S&P 500 as investors grew concerned over rising bond yields. Hang Seng index gained 91 points after coming back from the CNY holiday while Nikkei 225 index slid 265 points.
- Oil prices fell in early trade on Wednesday as the U.S. dollar climbed, retreating after a two-day rally that was driven by an Arctic blast curbing output from oil and gas fields in Texas, the country’s biggest oil-producing state.
Dow Jones Index
(CFD Symbol: US30)
Last : 31,513
This index created an all-time high of 31,724 during the last trading session, but closed slightly lower. The 20EMA is rising and is providing the first layer support at 31,150. There is divergence warning given from the MACD that warns for potential top. It has to break above this high for further upside; else, a correction could be expected. Stochastic is also at the overbought region but still looks strong.
Buy 31,300 for 31,700 with a stop below 31,110.
Hang Seng Index
(CFD Symbol: HK50)
Last : 30,699
Price shows the strong upward momentum strength by creating a rising window and closing above the resistance zone of 30,350 two days ago. As long as this gap is not closed, we look forward for price moving higher towards 32,260. Stochastic is rising now. MACD is also bullish and there is a bullish MACD crossover.
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTEC)
Last : 13,755
Target price :
Price created an all-time high of 13,908 last night, but ended the day with an Engulfing candlestick pattern. It has to surpass this high for further upside. With the potential divergence warning given from the MACD, this index could retrace to the first layer of support at the 20EMA of 13,520. Stochastic is at the overbought region and MACD is still bullish.
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Recommendation: Long @ 3920
Target price: 3990
Protective stop: 3885
This index created an all-time high of 3963 during the last trading session, but ended the day with an Engulfing candlestick pattern. Price has to breakthrough this high for further upside. The 20EMA will be providing the first layer of support at 3874. Stochastic is at the overbought region but still strong. MACD is still bullish
Buy 3920 for 3990 with a stop below 3885. Entry order was filled on 17 Feb.