- S&P 500 and the Dow closed at all-time highs on Thursday as worries about rising inflation subsided, while a bigger-than-expected fall in weekly jobless claims and the signing of a massive stimulus bill reinforced expectations of a strong economic recovery. Mega-cap stocks Microsoft, Apple, Facebook Inc and Amazon led the rally.
- President Joe Biden signed his $1.9 trillion stimulus bill into law on Thursday, commemorating the one-year anniversary of a U.S. lockdown over the coronavirus pandemic with a measure designed to bring relief to Americans and boost the economy.
- The number of Americans filing new claims for jobless benefits dropped to a four-month low last week as an improving public health environment allows more segments of the economy to reopen, putting the labour market recovery back on track.
- Asian markets were mixed on Friday morning after U.S. President Biden signed a $1.9 trillion stimulus bill into law, and as a retreat in bond yields overnight eased global concerns about rising inflation. Hang Seng index fell 174 points while Nikkei 225 index gained 277 points.
- Brent crude prices eased on Friday but hovered near $70 a barrel as production cuts by major oil producers constrained supply, with optimism about a recovery in demand for the resource in the second half of the year also lending support.
Dow Jones Index
(CFD Symbol: US30)
Last : 32,541
Price rebounded strongly after hitting the Fibonacci 62% key correction point of Feb’s rally. This index is now on a rally after penetrating above its previous high of 32,077. The 20EMA is rising now, suggesting the bullish price trend now. Both Stochastic and MACD are strong and rising now. The next resistance comes in at 33,020.
Wait for better trading idea.
Hang Seng Index
(CFD Symbol: HK50)
Last : 29,129
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 29,345. The next support lies at 28,000. Stochastic is still weak now. MACD has turned bearish.
Buy 28,900 for 30,100 with a stop below 28,600.
Nasdaq 100 Index
(CFD Symbol: USTEC)
Recommendation : Short @12,670
Last : 12,532
Target price : 12,100
Protective stop: 13,110 Triggered
Price rebounded after hitting the Fibonacci 161% projection level. However, there is an overhead support-turned-resistance that comes in at 12,730. Price is now testing the overhead 20EMA resistance at 13,000. It has to penetrate above the 20EMA for 13,360. Stochastic is rising from 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. Stop was triggered on 11 Mar.
Nikkei 225 Index
(CFD Symbol: JP225)
This index is moving along with the rising trendline that is acting as support at the moment. Price is penetrating above the 20EMA at 29,350 now, hinting at potential upside ahead. Stochastic is turning up and a bullish MACD crossover is likely. Both of the MACD’s lines are near to the zero line as well. As long as this trendline holds, there is chance for this index testing its high at 30,723 again.
Wait for better trading idea