- U.S. markets closed mixed at the end of a volatile week of trading, with the Dow Jones being the only bright spot that being lifted by Boeing, Caterpillar and Goldman Sachs, as inflation concerns loom over growth names. S&P 500 pared its earlier gains, down 0.08% while Nasdaq fell 0.48%.
- Strong economic data has put pressure on growth stocks, which are more likely to be impacted by potential interest hike. U.S. business activity picked up in May amid strong domestic demand, but backlogs of uncompleted work are piling up as manufacturers struggle to find raw materials and labour.
- Oil prices edged higher as a storm formed in the Gulf of Mexico and Iran said a three-month nuclear monitoring deal had expired, raising doubts about the future of indirect talks that could end U.S. sanctions on Iranian crude exports.
- Asia Pacific stocks were mixed on Monday morning following the cryptocurrency market volatility and as concerns about the slowdown of stimulus measures continued. Hang Seng index fell 102 points while Nikkei 225 index rose 134 points.
- While some countries continue their economic recovery from COVID-19, investors remain concerned that governments could start scaling back stimulus measures as well as about the COVID-19 outbreaks in parts of Asia.
Dow Jones Index
(CFD Symbol: US30)
Last : 34,330
This index has been hovering around the flat 20EMA that hint for consolidation now. It has to surpass its recent high of 34,490 for more upside ahead. A bullish Stochastic is likely as the fast line is turning up. The MACD remains bullish with both of its lines are above the zero line.
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Last : 28,332
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.
Buy 28,050 for 29,300 with a stop below 27,550
Nasdaq 100 Index
(CFD Symbol: USTEC)
Last : 13,424
Target price :
Price rebounded after hitting the rising trendline support that formed since November 2020 for the fourth time. 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 13,450. Stochastic is rising now. MACD has turned bearish.
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Recommendation: Short @ 4115
Target price: 4005
Protective stop: 4185 Triggered
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. A bearish Stochastic crossover could be likely. MACD remains bullish and there is a bullish crossover.
Sell 4115 for 4005 with a stop above 4185. Entry order was filled on 20 May. Stop was triggered on 21 May.