- U.S. stocks climbed on Friday as investors brushed off a stronger-than-expected inflation reading, as both the Dow and S&P 500 indexes clinched their first weekly gain in the past three weeks. Dow Jones rose 64 points, S&P 500 was up 3 points and Nasdaq Composite gained 12 points.
- Consumer prices, as measured by the personal consumption expenditures (PCE) price index excluding the volatile food and energy components, rose 0.7% in April, topping analysts’ 0.6% estimate and after a 0.4% increase in March. PCE is the Federal Reserve’s preferred measure of inflation.
- Fed officials have repeatedly maintained in recent days that the central bank is not ready to adjust its monetary support. On Thursday, Federal Reserve Bank of Dallas President Robert Kaplan said the labour market was tighter than many realize.
- Shares in Asia-Pacific slid in Monday morning trade, as investors reacted to the release of China’s official manufacturing Purchasing Managers’ Index for May. Hang Seng index fell 115 points and Nikkei 225 index slipped 220 points.
- Oil prices were firm after gaining more than 5% last week to reach two-year closing highs as expectations of a rebound in global demand outweighed concerns about more supply from Iran once sanctions are lifted.
Dow Jones Index
(CFD Symbol: US30)
Recommendation : Long @ 34,540
Last : 34,565
Target price: 35,000
Protective stop: 34,199
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 again. Stochastic is turning up now. The MACD remains bullish and there is a bullish MACD crossover.
Buy at 34,540 for 35,000, with a stop below 34,199. Entry order was filled on 28 May.
Hang Seng Index
(CFD Symbol: HK50)
Last : 28,973
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 and could have formed bearish reversal. We are likely to see price testing its low again. Stochastic is at the overbought region now. MACD has turned bullish.
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTEC)
Last : 13,697
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 13,560. Stochastic is rising now. MACD has turned bullish.
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
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 4173. As long as price moves above the 20EMA, we are likely to see price moving higher. Stochastic is at the overbought region now but MACD remains bullish.
Buy at 4175 for 4245 with a stop below 4140