- U.S. stocks dived on Thursday on reports President Joe Biden planned to almost double the capital gains tax, news analysts said provided an excuse to take profits in a directionless market ahead of big tech’s earnings next week.
- Investors welcomed data showing the number of Americans filing new claims for unemployment benefits last week dropped to a fresh one-year low. The Labour Department report suggested layoffs were subsiding and expectations were rising for another month of blockbuster job growth in April.
- The speedy U.S. vaccination rollout has improved the economic outlook as people plan summer vacations and leisure spending, but a surge in COVID-19 cases in India and elsewhere in Asia has kept investors anxious.
- Asian shares were mixed on Friday morning after the ECB left policy unchanged, extending a rebound following a sharp selloff earlier in the week, but gains were capped as investors considered the impact of a possible U.S. capital gains tax hike. Hang Seng index rose 250 points while Nikkei 225 index fell 204 points.
- The European Central Bank’s decision to keep copious stimulus flowing came despite its prediction of a strong rebound in the euro zone economy from mid-year as COVID-19 infections are brought under control.
Dow Jones Index
(CFD Symbol: US30)
Last : 33,853
Price is consolidating now after hitting a high at 34,253 last Friday. It has to surpass this high for more upside. The 20EMA will be the first layer of support at 33,590. A violation of the 20EMA will hint for deeper correction towards 32,900. Both Stochastic and MACD have been giving divergence warning. Stochastic is at the overbought region and is falling now. MACD is still strong at the moment.
Buy 33,300 for 34,000 with a stop below 32,890
Hang Seng Index
(CFD Symbol: HK50)
Last : 28,013
Price is going to test the overhead falling trendline that formed since early March 2021 for the fifth occasions. We would like to see a firm close above this trendline to confirm the breakout for more upside. A failure move to penetrate above the trendline is likely to bring price lower again. Stochastic is falling now. MACD has turned bullish and it is moving higher.
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTEC)
Recommendation : Long @ 13,900
Last : 13,782
Target price : 14,300
Protective stop: 13,650
This index has been moving lower after forming a high at 14,066. It is going to test the 20EMA support at 13,660. As long as the 20EMA holds, there is still chance for price to move higher. Stochastic is falling now. MACD is still bullish despite having a bearish crossover.
Buy 13,900 for 14,300 with a stop below 13,650. Entry order was filled on 20 Apr
S&P 500 Index
(CFD Symbol: US500)
Price is now having a pullback after hitting a high at 4191. It is going to test the first layer of support at 20EMA at 4096. As long as the 20EMA holds, there is chance for this index moving higher again. Stochastic is falling but is still strong. MACD remains bullish despite having a bearish crossover.
Wait for better trading idea