- The blue-chip Dow powered to its fifth consecutive record high on Friday and the S&P 500 closed slightly higher as investors bought shares that could benefit from a strong reopening of the U.S. economy, an outlook signaled by rising yields in the bond market.
- The speedy distribution of vaccines and more fiscal aid have spurred concerns of rising inflation despite assurances from the Federal Reserve to maintain an accommodative policy. All eyes will be on the central bank’s policy meeting next week for further cues on inflation.
- On top of continued U.S. economic optimism and increased debt supply expectations after the stimulus, uncertainties about whether the Fed will extend an emergency regulatory easing in the so-called “supplementary leverage ratio” (SLR) added to the sense of unease.
- Asia Pacific stocks were higher while U.S. bond yields hovered near a 13-month peak on Monday morning as investors bet U.S. economic growth will accelerate after the passing of a massive stimulus package. Hang Seng index rose 102 points and Nikkei 225 index gained 97 points.
- Market participants have grown wary in recent weeks that massive fiscal stimulus and pent-up consumer demand could lead to a jump in inflation as expanding vaccination campaigns bring an end to lockdowns.
Dow Jones Index
(CFD Symbol: US30)
Last : 32,841
Price rebounded strongly after hitting the Fibonacci 62% key correction point of Feb’s rally on 4 March 2021. This index is now on a rally after penetrating above its previous high of 32,077. The 20EMA is rising currently, hinting the bullish price trend. It is near to its overhead resistance at 33,020. Both Stochastic and MACD are strong and rising now.
Wait for better trading idea.
Hang Seng Index
(CFD Symbol: HK50)
Recommendation : Long @ 28,900
Last : 28,799
Target price: 30,100
Protective stop: 28,600
Price has been hovering at the Fibonacci 50% correction point of Dec 20-Feb 21’s rally. The 20EMA is acting as resistance at 29,260. There is potential divergence warning given from the MACD. If price can close above the 20EMA, we are likely to see price moving higher to retest its high at 31,114. Stochastic is at the overbought region but MACD has turned bearish.
Buy 28,900 for 30,100 with a stop below 28,600. Buy entry was filled on 12 Mar.
Nasdaq 100 Index
(CFD Symbol: USTEC)
Last : 12,949
Target price :
Price rebounded after hitting the Fibonacci 161% projection level. However, there is an overhead support-turned-resistance that comes in at 13,360. 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 13,050 for 12,300 with a stop above 13,400.
Nikkei 225 Index
(CFD Symbol: JP225)
This index is moving along with the rising trendline that is acting as support at the moment. Price has penetrated above the 20EMA, hinting at potential upside ahead. Stochastic is turning up and there is a bullish MACD crossover. The MACD has turned bullish now. We are likely to see price moving higher to test its high at 30,723.
Wait for better trading idea