Market News
- U.S. stocks were higher after the close on Friday, as gains in the Oil & Gas, Basic Materials and Industrials sectors led shares higher. Dow Jones rose 0.66% to hit a new all-time high, while the S&P 500 climbed 0.74%, and the NASDAQ Composite gained 0.88%.
- Steve Hanke from Johns Hopkins University says the Fed is looking at the wrong indicators. They “needs a new speedometer”, warning that the central bank is ignoring the potential impact of government-fueled stimulus spending and growing money supply.
- U.S. nonfarm payrolls data on Friday came in weaker than expected. The report showed jobs growth unexpectedly slowed in April, which gave equities a lift but put downward pressure on the dollar and U.S. Treasury yields.
Market Views
- Asian stocks rose on Monday morning amid speculation that interest rates will remain low due to receding inflationary pressure, while oil and gas prices jumped after a cyber-attack on a U.S. pipeline operator unnerved markets. Hang Seng index fell 138 points while Nikkei 225 index rose 199 points.
- The White House is working closely with top U.S. fuel pipeline operator Colonial Pipeline on Sunday to help it recover from a ransomware attack that forced the company to shut its main fuel lines.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 34,864
Target price:
Protective stop:
Outlook
This index has been moving higher and has formed new all-time high every day after breaking out from the triangle pattern on 4 May. The 20EMA is rising and is acting as first layer of support at 34,080. The bullish trend is likely to be continued and the next target lies at 35,110. Stochastic is rising now while MACD remains strong.
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 28,498
Target price:
Protective stop:
Outlook
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 but MACD has turned bearish but a bullish crossover is likely.
Trading Idea
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTEC)
Trend :
Recommendation :
Last : 13,731
Target price :
Protective stop:
Outlook
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 on 6 May, hinting that price could rebound to retest its high again. Stochastic could be turning up and MACD is still bullish.
Trading Idea
Buy 13,560 for 13,950 with a stop below 13,340
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 4239
Target price:
Protective stop:
Outlook
Price managed to stay above the rising 20EMA which is acting as support at 4166, keeping the bullish trend intact. It has penetrated its recent high and we are likely to see a higher upside at 4350. Stochastic is turning up now. MACD remains bullish and a bullish crossover is likely.
Trading Idea
Buy 4170 with a stop below 4130 for 4240.
