- S&P 500 surged on Thursday to its first-ever close above the 4,000 mark, lifted by gains in Microsoft, Amazon, Nvidia and Alphabet, as well as optimism about a recovering U.S. economy. Dow Jones gained 171 points and Nasdaq Composite advanced 233 points.
- Data showed the number of Americans filing new claims for unemployment benefits rose unexpectedly last week. However, other data showed a measure of manufacturing activity soared to its strongest level in more than 37 years in March, with employment at factories the highest since February 2018.
- Markets are surely not convinced that the Fed can be that relaxed when we have very strong jobs data while the government is proposing another massive stimulus, with Fed funds futures fully priced in one rate hike by the end of next year.
- Asian stocks rose to a 1 1/2-month high on Monday morning after data showing a surge in U.S. employment while short-dated U.S. bonds came under pressure on worries Fed may bump up interest rates sooner than it has indicated. Hang Seng index surged 560 points and Nikkei 225 index rose 229 points.
- Oil prices dipped after OPEC+ agreed last week to gradually ease some of its production cuts between May and July. U.S. crude futures fell 0.5% to $61.16 per barrel.
Dow Jones Index
(CFD Symbol: US30)
Last : 33,357
This index has penetrated above its previous price resistance high of 33,229 last Friday after breaking out from the Flag pattern. The upward momentum is likely to continue and the next target lies at 33,990. Stochastic is rising but is in the overbought region now. MACD is also strong and bullish now.
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Recommendation : Short @ 28,800
Last : 28,980
Target price: 27,700
Protective stop: 29,200
Today, there is a strong bullish candle that brought price higher to close above the 20EMA resistance. If price can sustain above the 20EMA at 28,790, the resistance levels will be at 29,310 and 29,730 thereafter. Stochastic is rising now and could have formed a potential divergence warning but MACD is still bearish.
Sell 28,800 for 27,700 with a stop above 29,200. Entry order was filled on 5 April. Entry order was filled on 5 April
Nasdaq 100 Index
(CFD Symbol: USTEC)
Last : 13,332
Target price :
This index slightly broke and closed above the upper boundary of the consolidation zone that ranged from 12,730-13,340 last Friday. If price can hold above 13,340, we are likely to see price moving higher towards 13,908. A failure move to sustain at 13,340 is likely to bring price back to the consolidation zone. Stochastic is still rising now. MACD has turned bullish
Buy 13,180 for 13,850 with a stop below 12,850.
S&P 500 Index
(CFD Symbol: US500)
Price has penetrated above its previous price resistance high at 3988. The 20EMA is acting as support at 3955. The next resistance lies at 4070. Stochastic is rising at the overbought region. MACD is still bullish now, but the histogram hasn’t picked up the momentum yet.
Wait for better trading idea