CFD Indices – US Equities Lifted By Growth Prospects

Market News

  • U.S. stocks rose in a late-day rally on Thursday as investors bought stocks likely to do well in the recovery and picked up beaten-down Apple and Tesla shares in anticipation that the U.S. economy grows at its fastest pace in decades this year.
  • President Biden cited as economic progress Labour Department data that showed claims for unemployment benefits dropped to a one-year low last week, a sign that the U.S. economy is on the verge of stronger growth as the public health situation improves and temperatures rise.
  • In his first formal news conference, U.S. President Joe Biden said that he would double his Administration’s vaccination rollout plan after reaching the previous goal of 100 million shots 42 days ahead of schedule.

Market Views

  • Asia Pacific markets traded higher on Friday morning after U.S. equities rose as investors weighed the outlook for economic growth and inflation and welcomed progress on vaccination rollouts. Hang Seng index rose 256 points and Nikkei 225 index surged 435 points.
  • Federal Reserve Chairman Jerome Powell acknowledged on Thursday that fiscal help from Congress and accelerated vaccine distribution has allowed the U.S. to recover faster than expected.

Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation : Long @ 32,200
Last : 32,709
Target price: 32,800
Protective stop: 31,870

Outlook
The price correction that started since 18 Mar could have ended as price rebounded after the intraday violation of the 20EMA. The 20EMA is still rising, hinting at the bullish price trend now. We are likely to see price penetrating its recent high of 33,229 for more upside at 33,610. Stochastic is still strong at the moment. MACD is also strong and bullish now despite a bearish crossover was seen.

Trading Idea
Buy 32,200 for 32,800 with a stop below 31,870. Entry order was filled on 25 Mar.

Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 28,185
Target price:
Protective stop:

Outlook
Price broke below its previous low support two days ago. If price can stand back above the 28,030, the first resistance will be the 20EMA at 28,830. The 20EMA is still falling now, suggesting the bearish price trend. Stochastic is still weak but could be forming potential divergence warning. There is also potential divergence warning given from the MACD histogram.

Trading Idea
Buy 28,100 with a stop below 27,800 for 28,750.

Nasdaq 100 Index
(CFD Symbol: USTEC)
Trend :
Recommendation :
Last : 12,837
Target price :
Protective stop:

Outlook
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

Trading Idea
Wait for better trading idea

S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation: Long @ 3903
Last: 3913
Target price: 3960
Protective stop: 3875 Triggered

Outlook
Price ended the day with a bullish candle last night after being supported by the rising 20EMA that hint for the bullish price trend now. We could see price testing its high at 3988 again. Stochastic could be turning up again. MACD is still bullish now.

Trading Idea
Buy 3903 for 3960 with a stop below 3875. Entry was filled on 23 Mar. Stop was triggered on 25 Mar.

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