- Wall Street ended mixed on Friday as U.S. Treasury yields took a break from a recent surge. The Nasdaq closed higher, lifted by Facebook and energy shares, while the S&P 500 and Dow Jones lost ground to close lower.
- The yield on U.S. 10-year notes, which has risen sharply in the past seven weeks on growth expectations, hovered near a 14-month peak at $1.742%. We are seeing some degree of reversal of leadership in the equity market, said senior investment director at U.S. Bank Wealth Management in Minneapolis.
- Optimism about a US$1.9 trillion fiscal package and the Fed’s promise to maintain its ultra-loose policy stance for years has accelerated a shift into economy-linked stocks, powering the S&P 500 and the Dow to record levels this week.
- Asian markets slipped on Monday morning as a plunge in the Turkish lira sparked talk that capital controls might be needed to stem the rout, though the wider fallout was relatively restrained for the moment. Hang Seng index slid 119 points and Nikkei 225 index plunged 543 points.
- Monday’s tumble in the lira saw the yen firm modestly. Also supporting the yen were concerns Japanese retail investors that have built long lira positions, a popular trade for the yield-hungry sector, might be squeezed out and trigger another round of lira selling.
Dow Jones Index
(CFD Symbol: US30)
Last : 32,556
Price has been resisted after hitting the Fibonacci 161% projection level. It ended the day with a bearish candle last Thursday. It has to break above this resistance level for more upside. The 20EMA is acting as support at 32,200. Stochastic is still strong at the moment but is at the overbought region. MACD is also strong and bullish now.
Buy 32,200 for 32,800 with a stop below 31,870.
Hang Seng Index
(CFD Symbol: HK50)
Recommendation : Long @ 28,900
Last : 28,977
Target price: 30,100
Protective stop: 28,600
Price was resisted by the 20EMA since late Feb 21. The 20EMA is still moving lower now, hinting for the bearish trend. If price unable to penetrate above the 20EMA, we are likely to see price moving lower again. Stochastic is rising from the overbought region but is still weak. MACD is also bearish now.
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)
Recommendation : Short @ 13,050
Last : 12,919
Target price : 12,300
Protective stop: 13,100
Price rebounded after hitting the support zone with a Spinning Top candlestick pattern last Friday. If today’s candle can close above 12,910, we are likely to see price testing the upper resistance boundary at 13,300. Stochastic could be moving lower. MACD is bearish now but both of its lines are moving higher
Sell 13,050 for 12,300 with a stop above 13,400. Entry order was filled on 16 Mar. Stop lowered to 13,100 on 19 Mar.
S&P 500 Index
(CFD Symbol: US500)
A long bearish candlestick was formed last Thursday, following the two indecision candlesticks earlier on. The 20EMA is acting as first layer of support at 3903. A violation of this 20EMA would hint for a deeper correction. Stochastic is at the overbought region. MACD is bullish now but could be forming potential divergence warning.
Buy 3903 for 3960 with a stop below 3875