- U.S. stocks rallied on Tuesday, with the Nasdaq surging about 4% to recoup heavy losses from the previous session as U.S. bond yields retreated and investors scooped up battered technology stocks. Tesla, Amazon and Microsoft are the biggest contributors.
- News that a $1.9 trillion coronavirus relief package was nearing final approval sparked a spike in yields on Monday, pushing the tech-heavy Nasdaq to end more than 10% below its Feb. 12 closing high, confirming a correction for the index.
- U.S. 10-year Treasury note yields eased to as low as 1.523% after hovering near 13-month highs of 1.613% on Monday. Longer-dated yields have jumped over the last month as investors price in a faster rebound and higher inflation that expected at the start of the year.
- Asian markets were higher on Wednesday morning, as falling bond yields eased concerns about surging inflation, although focus will shift to Chinese markets amid worries about policy tightening in the world’s second-largest economy. Hang Seng index was up 5 points and Nikkei 225 index gained 12 points.
- Oil prices backed off early highs in choppy trading, with Brent dipping back to the $68 mark as investors weighed easing concerns over a supply disruption in Saudi Arabia with the likelihood of limited supply from OPEC+ output limits.
Dow Jones Index
(CFD Symbol: US30)
Last : 31,820
Price rebounded strongly after hitting the Fibonacci 62% key correction point of Feb’s rally. It hit a high of 32,148 for two consecutive occasions and we would like to see price penetrating above this level for more upside. Both Stochastic and MACD could be showing potential divergence warning. Stochastic is turning up and MACD is bullish now.
Wait for better trading idea.
Hang Seng Index
(CFD Symbol: HK50)
Last : 28,976
Price violated both the rising trendline support that formed since Dec 2021 and the 20EMA support on 26 Feb. The 20EMA is falling now, suggesting a bearish trend. It is also acting as a resistance at 29,410. The next support lies at 28,000. Stochastic is falling now. MACD is still bullish but there is a bearish crossover.
Buy 28,400 for 29,550 with a stop above 28,020
Nasdaq 100 Index
(CFD Symbol: USTEC)
Recommendation : Short @12,670
Last : 12,532
Target price : 12,100
Protective stop: 13,110
Price rebounded after hitting the Fibonacci 161% projection level. However, there is an overhead support-turned-resistance that comes in at 12,730. Price has slightly penetrated this resistance level last night. Let’s see if it can stay above this level for three days to confirm the breakout. Else, we are likely to see price moving lower again. The 20EMA resistance is at 13,000. Stochastic is at the oversold region but MACD has turned bearish.
Sell 12,670 for 12,100 with a stop above 13,110. Entry was filled on 8 Mar.
S&P 500 Index
(CFD Symbol: US500)
This index is in the process of consolidation. There is an overhead declining trendline resistance that comes in at 3900. The 20EMA is also flat at the moment. Price has to breakthrough this downtrend line for further upside. Stochastic is turning up but MACD has turned bearish.
Wait for better trading idea