Market News
- U.S. shares rebounded on Thursday after falling for three consecutive days and benchmark Treasury yields dipped, as investors snapped up stocks that would benefit from an economic recovery and shrugged off worries about rising prices.
- Some investors now worry that quickening price pressures could lead the U.S. Federal Reserve to tighten monetary policy sooner than expected, reducing its supply of cheap money that has propelled financial markets higher. However, inflation woes took a backseat.
- Benchmark 10-year Treasury yields, which spiked 7 basis points overnight in the biggest daily rise in two months, fell by nearly 4 basis points to 1.6556% as investors took a breather.
Market Views
- Stocks in Asia-Pacific rose in Friday morning, following an overnight bounce for stocks stateside. Nikkei 225 index jumped 542 points — partially recovering from the more than 2% plunge seen on Thursday. Hang Seng index gained 265 points.
- Oil prices dipped in the morning of Asia trading hours, with international benchmark Brent crude futures down 0.37% to $66.80 per barrel. U.S. crude futures slipped 0.28% to $63.64 per barrel.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation : Long @ 34,100
Last : 34,129
Target price: 34,800
Protective stop: 33,690 Triggered
Outlook
Price broke below the 20EMA two nights ago and yesterday, there is a rebound, forming a potential Harami candlestick pattern. It has to close above 34,314 tonight to confirm the reversal for more upside. Else, the correction is likely to be continued. Stochastic is falling now. MACD is still bullish but there is a bearish crossover
Trading Idea
Buy 34,100 for 34,800 with a stop below 33,690. Entry and stop was filled on 12 May
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 27,955
Target price:
Protective stop:
Outlook
This index is expected to move within a rectangle consolidation zone that ranged from 27,500 to 29,570. The 20EMA is falling now, hinting that price may hit the lower boundary at 27,500. Stochastic is falling now. MACD has turned bearish and is moving lower.
Trading Idea
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTEC)
Trend :
Recommendation :
Last : 13,186
Target price :
Protective stop:
Outlook
Price violated the resistance-turned-support level after being capped by the falling 20EMA. A two-day rebound was seen during the past trading sessions, but it has to surpass 13,340 for a test towards the 20EMA at 13,500. Stochastic is at the oversold region but MACD has turned bearish.
Trading Idea
Buy 13,100 for 13,550 with a stop below 12,850.
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 4131
Target price:
Protective stop:
Outlook
Price rebounded after hitting the Fibonacci 50% correction point. It has to surpass the 20EMA resistance of 4145 for more upside ahead. Else, a correction is likely to be continued. Stochastic is moving lower now. MACD remains bullish but there is a bearish crossover.
Trading Idea
Wait for better trading idea
