- S&P 500 fell on Tuesday amid selling in Big Tech and other high-growth stocks, erasing the benchmark’s strong start to the month. Pressure on some of the globe’s largest technology companies sent the Nasdaq Composite down 1.9% for its worst day since March.
- Reasons for the downward pressure varied, but strategists cited a mix of concerns about rising inflation, fears the Federal Reserve may have to taper monetary stimulus earlier than forecast and the potential for tax increases in the months ahead.
- U.S. Treasury Secretary Janet Yellen said Tuesday that interest rates may have to rise to keep a lid on the burgeoning growth of the U.S. economy brought on in part by trillions of dollars in government stimulus spending.
- Wednesday’s session in Asia was lower, following an overnight session on Wall Street where the S&P 500 fell while the Nasdaq Composite registered its worst day since March. Hang Seng index fell 1 point while Japan remains closed for the holidays.
- Oil prices extended gains Wednesday during Asian trading hours as optimism of stronger demand grows amid easing restrictions in Europe and the U.S., which is offsetting the weakness in India
Dow Jones Index
(CFD Symbol: US30)
Last : 34,220
This index has broken out from the triangle pattern last night. The 20EMA is rising and is acting as first layer of support at 33,840. The next target lies at 34,790. Stochastic is rising now and there is a bullish crossover. MACD remains strong and a bullish crossover is likely.
Buy at 33,760 for 34,250 with a stop below 33,500.
Hang Seng Index
(CFD Symbol: HK50)
Last : 28,584
Price was resisted by the price resistance at 29,180. It has formed a reversal candlestick pattern of Evening Doji Star, and there is a follow-through bearish candlestick. We could see price testing its low at 27,500 again. Stochastic is falling now. MACD has turned bearish and there is a bearish crossover
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTEC)
Recommendation : Long @ 13,900
Last : 13,586
Target price : 14,300
Protective stop: 13,650 Triggered
Price broke and closed below the neckline of the Double Top chart pattern as well as the 20EMA last night. It is now going to test the resistance-turned-support level at 13,340. As long as this support holds, there is chance for this index moving higher again. Else, we could see price moving further lower. Stochastic is falling now but MACD is still bullish.
Buy 13,900 for 14,300 with a stop below 13,650. Entry order was filled on 20 Apr. Stop was triggered on 4 May.
S&P 500 Index
(CFD Symbol: US500)
Price hit the Fibonacci 200% projection level and a new high was created at 4218 on 29 April. The 20EMA is rising and is acting as first layer of support at 4147. Stochastic is still at the overbought region now. MACD remains bullish. A violation of the 20EMA could bring price lower provided with the potential divergence warning given from the Stochastic.
Buy 4140 with a stop below 4100 for 4220.