Market News
- Wall Street’s main indexes rebounded on Thursday after a three-day slide, with the S&P 500 climbing more than 1%, buoyed by gains in technology stocks as the smallest weekly jobless claims since the start of a pandemic-driven recession lifted the mood.
- Other data on Thursday showed the number of Americans filing new claims for unemployment benefits dropped further below 500,000 last week, but jobless rolls swelled in early May, which could temper expectations for acceleration in employment growth this month.
- Signs of rising inflation have increased bets that the Federal Reserve may tighten its policy soon, hitting rate-sensitive growth stocks that set the tech-heavy Nasdaq on track for its fifth consecutive weekly drop.
Market Views
- Asia Pacific stocks were mostly down in Friday morning even as the economic outlook improves and investor fears of a decrease in U.S. stimulus eased. Hang Seng index fell 57 points while Nikkei 225 index gained 124 points.
- Oil prices were higher in the morning of Asia trading hours, with international benchmark Brent crude futures rising 0.2% to $65.24 per barrel. U.S. crude futures advanced 0.39% to $62.18 per barrel.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 34,117
Target price:
Protective stop:
Outlook
The two-day rebound brought price back to the Fibonacci 62% correction point of the May’s decline. In order for this index to move higher, it has to surpass this resistance. If price fails to move this resistance, it is likely to head lower to 33,285. Stochastic has a bearish crossover but MACD remains bullish.
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 28,340
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 rising window was created on 18 May and if this gap can maintain, price could go higher. Stochastic had a bullish crossover now but MACD is still bearish.
Trading Idea
Buy 28,050 for 29,300 with a stop below 27,550
Nasdaq 100 Index
(CFD Symbol: USTEC)
Trend :
Recommendation :
Last : 13,504
Target price :
Protective stop:
Outlook
Price rebounded after hitting the rising trendline support that formed since November 2020 for the third times. The bullish trend will remain intact as long as price stay above the trendline. Price could go higher if it can maintain above the 20EMA at 13,460. Stochastic is rising now. MACD has turned bearish.
Trading Idea
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation: Short @ 4115
Last: 4162
Target price: 4005
Protective stop: 4185
Outlook
Price rebounded after hitting the Fibonacci 50% correction point. It has to surpass 4183 for higher upside. A violation of 4034 should be closely watched as it will form lower highs and lower lows hinting of a downtrend ahead. Stochastic is moving higher now. MACD remains bullish and a bullish crossover is likely
Trading Idea
Sell 4115 for 4005 with a stop above 4185. Entry order was filled on 20 May.
