- S&P 500 slipped on Tuesday, falling 3 points, but stayed near closing record highs posted in consecutive sessions, as investors weighed more strong U.S. economic data against nervousness about upcoming quarterly earnings reports.
- U.S. job openings rose in February to a two-year high while hiring picked up. The data came on the heels of Friday’s strong payrolls report and a report on Monday showing activity in the service sector climbed to a record high in March.
- The International Monetary Fund raised its global growth forecast to 6% this year from 5.5%, reflecting a rapidly brightening outlook for the U.S. economy. With upcoming earnings season expected to show S&P profit growth of 24.2% from a year earlier, investors will be watching to see whether corporate results further confirm recent positive economic data.
- Asia markets were mixed on Wednesday morning after Wall Street pulled back from record highs reached in previous sessions, as investors eye the upcoming earnings season for more signs of a recovery following a series of strong U.S. economic data. Hang Seng index fell 103 points while Nikkei 225 index rose 27 points.
- Oil prices edged higher on Wednesday on the prospects for stronger global economic growth amid increased COVID-19 vaccinations and a report that crude inventories in U.S., the world’s biggest fuel consumer, fell.
Dow Jones Index
(CFD Symbol: US30)
Last : 33,446
There is a slight pullback for this index after hitting the Fibonacci 200% projection level on 5 Apr. It has to penetrate this resistance for more upside. Price could have formed a potential Harami reversal candlestick pattern but we will need today’s candle to confirm this pattern. Both Stochastic and MACD are showing potential divergence warning. Stochastic could be falling soon but MACD is still bullish now.
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Recommendation : Short @ 28,800
Last : 28,783
Target price: 27,700
Protective stop: 29,200
Price was capped by the falling trendline that formed since early March 2021. It is also near to the Fibonacci 50% correction point. A failure move to penetrate above this trendline is likely to bring price lower back to test its previous low at 27,500. Stochastic is rising now but is still weak. MACD is still bearish.
Sell 28,800 for 27,700 with a stop above 29,200. Entry order was filled on 5 April.
Nasdaq 100 Index
(CFD Symbol: USTEC)
Last : 13,570
Target price :
This index has finally broken out from the consolidation zone that ranged from 12,730-13,340. There is a long bullish candle followed on the next day of the breakout. It is now taking a pause and could form potential Flag pattern. Stochastic is still rising now and is at the overbought region. MACD has turned bullish.
Buy 13,470 for 13,850 with a stop below 13,300.
S&P 500 Index
(CFD Symbol: US500)
Price hit the Fibonacci 161% projection level at 4071 two days ago. It could be taking a pause now. This index has to break above 4085 for more upside ahead. The 20EMA is acting as support at 3980. 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