- The S&P 500 dipped on Tuesday, with declines in healthcare and tech shares countered by energy and financial gains, as investors weighed the latest U.S. economic data for signs of a rebound and rising inflation. The Dow rose 45 points while the Nasdaq Composite fell 12 points.
- Data showed U.S. manufacturing activity picked up in May as pent-up demand in a reopening economy boosted orders. But unfinished work piled up because of shortages of raw materials and labour. People came back from a holiday weekend convinced that the economy is recovering nicely and that any inflation that we might be seeing in labour and other costs is temporary.
- Minneapolis Federal Reserve Bank President Neel Kashkari and Fed Vice-Chair for supervision Randal Quarles on Tuesday reiterated the view that higher prices would be transitory.
- Asian shares were mixed on Wednesday morning as data showing higher U.S. manufacturing activity in May cheered investors looking for signs of a continued rebound in the world’s largest economy. Hang Seng index fell 194 points while Nikkei 225 index rose 132 points.
- Brent futures rose 0.6% to $70.67 per barrel and U.S. West Texas Intermediate crude added 0.56% to $68.10 per barrel. The wait and see approach by OPEC is likely to see the market remain tight for the foreseeable future. The likelihood of additional Iranian oil hitting the market in the short term is also subsiding
Dow Jones Index
(CFD Symbol: US30)
Recommendation : Long @ 34,540
Last : 34,587
Target price: 35,000
Protective stop: 34,199
This index closed with a potential Shooting Star candlestick pattern last night after attempting to retest its high at 35,092. The 20EMA is now rising and is acting as support at 34,310. As long as the 20EMA support holds, the bullish trend remains intact. Stochastic is rising now and the MACD remains bullish.
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 : 29,292
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. Look for a bearish reversal candlestick pattern for a downside towards the lower boundary. Stochastic is at the overbought region and a bearish crossover is likely. MACD has turned bullish.
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTEC)
Last : 13,645
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. The 20EMA is now acting as support at 13,570. Stochastic is at the overbought region now. MACD has turned bullish.
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Price ended the day with a potential Shooting Star candlestick pattern last night. The 20EMA is now acting as support at the moment at 4176. A violation of this 20EMA is likely to hint for a correction. Price has to surpass the high for more upside. Stochastic is at the overbought region now but MACD remains bullish.
Buy at 4175 for 4245 with a stop below 4140