- S&P 500 closed at a record high on Thursday, as U.S. Treasury yields fell following softer-than-anticipated labour market data, boosting technology and other growth stocks. Nasdaq Composite advanced 140 points while Dow Jones rose 57 points.
- Weekly initial jobless claims data showed a second straight rise, conflicting with the recent payrolls report, and buttressed the Fed’s dovish policy stance to keep interest rates lower for a substantial period, but the increase likely understated the rapidly improving labour market conditions as more parts of the economy reopen and fiscal stimulus kicks in.
- U.S. Fed Chair Powell signaled on Thursday the central bank is nowhere near reducing its support for the U.S. economy, saying at an International Monetary Fund event that while the economic reopening could result in a momentary surge in prices, he expects it to be temporary and it will not constitute inflation.
- Asian markets had a choppy trading session on Friday morning after technology stocks lifted the S&P 500 to a new record even as investors weighed an unexpected rise in the number of Americans filing new claims for unemployment benefits. Hang Seng index fell 175 points while Nikkei 225 index rose 110 points.
- Oil prices edged up in early Asian trade on Friday, supported by a weaker dollar, as investors weighed rising supplies and the impact on fuel demand from the COVID-19 pandemic.
Dow Jones Index
(CFD Symbol: US30)
Last : 33,495
Price has been hovering around the Fibonacci 200% projection level for the past four days. It has to breakthrough this resistance for more upside. However, both Stochastic and MACD are showing potential divergence warning. A correction towards the 20EMA at 33,000 is likely if price can’t penetrate the resistance. Stochastic could be falling soon. MACD is still bullish but a bearish crossover is likely.
Sell 33,600 for 33,050 with a stop above 33,900.
Hang Seng Index
(CFD Symbol: HK50)
Recommendation : Short @ 28,800
Last : 28,770
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 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 : 13,798
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 that followed on the next day of the breakout. Price continued its upward strength and is going to test its overhead resistance at 13,908. Stochastic is still rising now and is at the overbought region. MACD has turned bullish.
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Price is now rising towards the Fibonacci 200% projection level. The 20EMA is rising and is acting as support at 4003 currently. Stochastic is rising at the overbought region now. MACD is still bullish now, but the histogram hasn’t picked up the momentum yet.
Wait for better trading idea