- U.S. stocks tumbled on Tuesday as concerns about the cost of infrastructure spending and potential tax hikes to pay for President Joe Biden’s $1.9 trillion relief bill weighed on investors who also fear further downside in the market. Nasdaq slid 1.1% while the Dow and S&P 500 fell 0.9% and 0.8%.
- Remarks by Treasury Secretary Janet Yellen that the U.S. economy remains in crisis from the pandemic as she defended developing plans for future tax increases to pay for the new public investments put investors on alert.
- Powell told U.S. lawmakers that a coming round of post-pandemic price hikes will not fuel a destructive breakout of persistent inflation – fears that had sparked a recent rise in yields and caused technology shares to sell off.
- Asian markets were poised to follow Wall Street lower on Wednesday morning as the cost of the U.S. stimulus and infrastructure plans and new pandemic curbs limited investors’ risk appetite. Hang Seng index plummeted 512 points and Nikkei 225 index plunged 530 points.
- Oil prices that slumped more than 3% on worries that new pandemic curbs and slow vaccine rollouts in Europe will slow a recovery in demand helped push the energy sector lower.
Dow Jones Index
(CFD Symbol: US30)
Last : 32,420
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 32,260. Stochastic is still strong at the moment but is at the overbought region. MACD is also strong and bullish now despite a bearish crossover was seen
Buy 32,200 for 32,800 with a stop below 31,870.
Hang Seng Index
(CFD Symbol: HK50)
Recommendation : Long @ 28,900
Last : 28,963
Target price: 30,100
Protective stop: 28,600 Triggered
Price was resisted by the 20EMA since late Feb 21 and today, it broke below its previous low support. The 20EMA is still moving lower, hinting of a bearish trend. We are likely to see price resuming its downside momentum and move lower towards 26,130. Stochastic is still weak and is moving lower. MACD is also bearish now and there is a bearish crossover.
Buy 28,900 for 30,100 with a stop below 28,600. Buy entry was filled on 12 Mar. Stop was triggered on 23 Mar.
Nasdaq 100 Index
(CFD Symbol: USTEC)
Recommendation : Short @ 13,050
Last : 13,075
Target price : 12,300
Protective stop: 13,100 Triggered
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. Stop was triggered on 23 Mar.
S&P 500 Index
(CFD Symbol: US500)
Recommendation: Long @ 3903
Target price: 3960
Protective stop: 3875
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 3908. A violation of this 20EMA would hint for a deeper correction. Stochastic is falling now. MACD is still bullish but could be forming potential divergence warning.
Buy 3903 for 3960 with a stop below 3875. Entry was filled on 23 Mar.