CFD Indices – Wall Street Ended Higher As US Economic Activity Return To Normal

Market News

  • Wall Street closed higher in a broad rally, an upbeat conclusion to whipsaw week of buying and selling as signs of a rebounding economy squared off against mounting inflation jitters. The Dow advanced 360 points, S&P 500 rose 61 points and Nasdaq Composite surged 304 points.
  • Economic data showed retail sales growth stalling and consumer sentiment dipping as prices remain on an upward trajectory, suggesting that while the demand boom might be taking a breather, inflation has not.
  • An indication that economic activity could return to normal, revised guidance from the U.S. Centres for Disease Control and Prevention said fully vaccinated people no longer need to wear masks outdoors and can avoid wearing them indoors in most places.

Market Views

  • Asian markets turned mixed on Monday morning as data on Chinese retail sales missed expectations though industrial output stayed solid, while more evidence of global inflation pressures helped gold to a three-month peak. Hang Seng index rose 140 points while Nikkei 225 index fell 330 points.
  • Oil prices were higher in the morning of Asia trading hours, with international benchmark Brent crude futures up 0.39% to $68.98 per barrel. U.S. crude futures advanced 0.4% to $65.63 per barrel.

Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 34,315
Target price:
Protective stop:

Outlook
The two-days rebound has brought price back to the Fibonacci 62% correction point of the May’s decline. It is crucial for this index breaking above this resistance level of 34,400 for more upside. Stochastic is still falling now but MACD remains bullish despite having a bearish crossover that hint for the correction.

Trading Idea
Wait for better trading idea

Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 28,125
Target price:
Protective stop:

Outlook
This index is expected to move within a rectangle consolidation zone that ranged from 27,500 to 29,570. A Bullish Engulfing was seen last Friday after trading near to the lower boundary of the range. It can move higher if it close above 28,400. Stochastic could be having a bullish crossover soon. MACD has turned bearish.

Trading Idea
Buy 28,050 for 28,990 with a stop below 27,550

Nasdaq 100 Index
(CFD Symbol: USTEC)
Trend :
Recommendation :
Last : 13,364
Target price :
Protective stop:

Outlook
Price rebounded after hitting the rising trendline support that formed since November 2020. We could see price continuing to move higher if it can surpass the 20EMA resistance at 13,510. Stochastic is at the oversold region and is turning up now. 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: 4166
Target price:
Protective stop:

Outlook
Price rebounded after hitting the Fibonacci 50% correction point. It has moved above the 20EMA resistance and a move to test its high at 4244 is likely. Stochastic is moving higher and a bullish crossover is likely. MACD remains bullish despite having a bearish crossover.

Trading Idea
Wait for better trading idea

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