CFD Indices – Labour Data Lifted Wall Street

Market News

  • U.S. stocks advanced slightly on Thursday, as data showing improvement in the labour market helped bolster expectations in the economic recovery and spurred a minor rotation towards stocks seen as more likely to benefit from the rebound.
  • The number of Americans filing new unemployment claims dropped more than expected last week to a 14-month low of 406,000 as pandemic restrictions continue to be lifted, while a separate report showed business spending on equipment picked up speed.
  • The data helped lift U.S. Treasury yields, with the benchmark 10-year note reaching a high of 1.625% and denting the attractiveness of higher-growth names in areas such as technology while helping those seen as more likely to benefit from an improving economy such as financials and small caps.

Market Views

  • Asian stocks were on course for a seventh day of gains on Friday morning as investors bet the U.S. will lead the world out of the COVID-19 pandemic, with the focus turning to a multi-trillion dollar spending boost by the Biden administration. Hang Seng index rose 150 points and Nikkei 225 index surged 562 points.
  • The New York Times reported that President Joe Biden will seek $6 trillion in federal spending for the 2022 fiscal year, a day before the White House is expected to unveil its budget proposal.

Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 34,626
Target price:
Protective stop:

Outlook
This index has been rising steadily along with the rising 20EMA that hint for the bullish trend. As long as the 20EMA support holds, we are likely to see price testing its high at 35,092. Stochastic is turning up now. The MACD remains bullish and there is a bullish MACD crossover.

Trading Idea
Buy at 34,540 for 35,000, with a stop below 34,199

Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 29,288
Target price:
Protective stop:

Outlook
This index is expected to move within a rectangle consolidation zone that ranged from 27,500 to 29,570. It is now near to its upper boundary. Watch for any bearish reversal candlestick if price can’t break through the upper resistance. Stochastic is at the overbought region now. MACD has turned bullish.

Trading Idea
Wait for better trading idea

Nasdaq 100 Index
(CFD Symbol: USTEC)
Trend :
Recommendation :
Last : 13,698
Target price :
Protective stop:

Outlook
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 13,540. Stochastic is rising now. MACD has turned bullish.

Trading Idea
Wait for better trading idea

S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 4215
Target price:
Protective stop:

Outlook
Price rebounded after hitting the Fibonacci 50% correction point. It penetrated above its recent high of 4191. The 20EMA is rising and is acting as support at the moment at 4170. As long as price moves above the 20EMA, we are likely to see price moving higher. Stochastic is rising now. MACD remains bullish and there is a bullish crossover.

Trading Idea
Buy at 4175 for 4245 with a stop below 4140

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