Market News
- Both S&P 500 and Dow Jones rose on Friday to close at record highs, posting a third straight weekly rise partly on a lift from growth stocks, with a late-day rally building gains ahead of quarterly earnings season next week.
- Data showed U.S. producer prices increased more than expected in March, bringing the largest annual gain in 9-1/2 years. Many investors now expect higher inflation as vaccine rollouts help the U.S. economy rebound from lockdowns, yet stocks showed little concern as the Fed has maintained it will allow inflation to overshoot its target.
- The banks kick off first-quarter earnings season next week with Goldman Sachs, JPMorgan and wells Fargo scheduled to report on Wednesday. Analysts expect profits for S&P 500 firms to show a 25% jump from a year earlier, which would be the strongest performance for the quarter since 2018.
Market Views
- Asian markets faltered on Monday morning as investors wait to see if U.S. earnings can justify sky-high valuations, while bond markets could be tested by what should be very strong readings for U.S. inflation and retail sales this week. Hang Seng index plunged 403 points and Nikkei 225 index fell 151 points.
- Oil prices fell around 2% last week as production increases and renewed COVID-19 lockdowns in some countries offset optimism about a recovery in fuel demand.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation : Short @ 33,600
Last : 33,700
Target price: 33,050
Protective stop: 33,900
Outlook
Price has penetrated above the Fibonacci 200% projection level after consolidating for four days. However, both Stochastic and MACD are showing potential divergence warnings. A correction towards the 20EMA at 33,090 is likely if there is a reversal signal. Stochastic could be falling soon. MACD is still bullish but a bearish crossover is likely.
Trading Idea
Sell 33,600 for 33,050 with a stop above 33,900. Entry order was filled on 9 April.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation : Short @ 28,800
Last : 28,294
Target price: 27,700
Protective stop: 28,800
Outlook
Price was capped by the falling trendline that formed since early March 2021. It is also near to the Fibonacci 50% correction point. Since this index couldn’t breakthrough this trendline resistance, we are likely to see price moving higher to test its previous low at 27,500. Stochastic is falling now. MACD is also bearish and a bearish crossover is likely.
Trading Idea
Sell 28,800 for 27,700 with a stop above 29,200. Entry order was filled on 5 April. Lower Stop to cost at 28,800.
Nasdaq 100 Index
(CFD Symbol: USTEC)
Trend :
Recommendation :
Last : 13,799
Target price :
Protective stop:
Outlook
This index has continued its upward strength and is going to test its overhead resistance at 13,908 after breaking out from the consolidation zone. The 20EMA is rising and is acting as support at 13,350, coinciding with the upper edge of the consolidation zone. Stochastic is still rising now and is at the overbought region. MACD has turned bullish.
Trading Idea
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 4115
Target price:
Protective stop:
Outlook
Price is now rising towards the Fibonacci 200% projection level. The 20EMA is rising and is acting as support at 4005 currently. Stochastic is rising at the overbought region now and a bearish crossover is likely. MACD is still bullish now, but the histogram hasn’t picked up the momentum yet.
Trading Idea
Wait for better trading idea
