- S&P 500 closed at another record high on Tuesday and the Nasdaq composite index jumped, as investors shook off concerns about the halt in Johnson & Johnson’s COVID-19 vaccine rollout after six women developed rare blood clots and strong U.S. inflation.
- The news came as U.S. data showed the consumer price index (CPI) in March rose by the most in more than 8-1/2 years, kicking off what the majority of economists expect will be a brief period of higher inflation.
- Cryptocurrency and blockchain-related firms Riot Blockchain and Marathon Digital Holdings gained 15% and 1.9% respectively as bitcoin prices soared 5.6%, a day ahead of the listing of Coinbase, the largest U.S. cryptocurrency exchange.
- Asia Pacific markets were mixed on Wednesday morning as bond yields eased after data showed U.S. inflation was not rising wildly. Hang Seng index gained 327 points while Nikkei 225 index slumped 101 points.
- The 10-year U.S. Treasury yield had surged from the start of the year to a 14-month high of 1.776% on March 30 on bets that massive fiscal stimulus would speed up a U.S. recovery, stoking faster inflation than Fed policymakers anticipate.
Dow Jones Index
(CFD Symbol: US30)
Recommendation : Short @ 33,600
Last : 33,640
Target price: 33,050
Protective stop: 33,900
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 33,200 is likely if there is a reversal signal. Stochastic could be falling soon. MACD is still bullish but there is a bearish crossover.
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)
Recommendation : Short @ 28,800
Last : 28,878
Target price: 27,700
Protective stop: 28,800 Triggered
Price was capped by the falling trendline that formed since early March 2021. It is also near to the Fibonacci 50% correction point. As long as this index couldn’t breakthrough this trendline resistance, we are likely to see price moving lower to test its previous low again at 27,500. Stochastic is rising now but MACD is still bearish.
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. Stop was triggered on 14 April.
Nasdaq 100 Index
(CFD Symbol: USTEC)
Last : 13,980
Target price :
This index has continued its upward strength and has broken its overhead resistance at 13,908. As long as price can stay above 13,908, there is still chance for price moving higher. The 20EMA is still rising and is acting as support at 13,470. 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 has penetrated above the Fibonacci 200% projection level. The 20EMA is rising and is acting as support at 4040 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.
Wait for better trading idea