- Dow Jones closed at a record high on Thursday, bolstered by an upbeat weekly jobless claims report, while vaccine makers dipped after U.S. President Joe Biden backed plans to waive patents on COVID-19 shots. S&P 500 and Nasdaq Composite lifted by Apple as well.
- Investors were awaiting a more comprehensive non-farm payrolls report on Friday for clues on the strength of the labour market and potentially the U.S. Fed’s stance on monetary policy. The U.S. central bank has pledged to keep its zero rates policy and other easing measures in place until it believes the labour market is strong and inflation is hotter.
- Treasury yields hovered near the lowest level this month on Friday, further removing support for the greenback, after bond traders largely shrugged off the better-than-expected initial jobless claims data and waited for the non-farm payrolls report to provide market direction.
- Asia-Pacific markets broadly advanced on Friday morning ahead of the U.S. jobs report due later in the day that might provide some indication on what the Fed could do next. Hang Seng index rose 154 points and Nikkei 225 index was up 82 points.
- While demand in major markets such as Europe and North American are recovering strongly, a new wave of Covid-19 cases is raising concerns about demand in Asia. This is likely to keep a lid until there is more clarity around the impact new restrictions in countries like India is having on demand.
Dow Jones Index
(CFD Symbol: US30)
Last : 34,545
This index has broken out from the triangle pattern on 4 May. The 20EMA is rising and is acting as first layer of support at 33,970. The bullish trend is likely to be continued and the next target lies at 34,790. Stochastic is rising now and there is a bullish crossover. MACD remains strong and there is also a bullish crossover.
Buy at 33,760 for 34,250 with a stop below 33,500.
Hang Seng Index
(CFD Symbol: HK50)
Last : 28,819
This index is expected to move within a rectangle consolidation zone that ranged from 28,000 to 29,570. The 20EMA is currently flat, suggesting the sideways movement as well. Stochastic could be turning up again. MACD has turned bearish but a bullish crossover is likely. We could see price testing its upper boundary again
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTEC)
Last : 13,640
Target price :
The recent price decline has brought price lower and nearer to the resistance-turned-support zone at 13,340. A Bullish Engulfing candlestick pattern was formed last night, hinting that price could rebound from here to retest its high again. Stochastic could be turning up and MACD is still bullish.
Buy 13,560 for 13,950 with a stop below 13,340
S&P 500 Index
(CFD Symbol: US500)
Price managed, to stay above the rising 20EMA which is acting as support at 4156, keeping the bullish trend intact. We could see a higher upside at 4350 if it can surpass its recent high at 4218. Stochastic could be turning up now. MACD remains bullish.
Buy 4140 with a stop below 4100 for 4220.