- U.S. stocks ended lower on Thursday, with tech shares dragging on the S&P 500 and Nasdaq, as investors balanced concerns about inflation and the Federal Reserve reining in stimulus with relief about corporate tax hikes.
- A better-than-expected U.S. weekly unemployment report and private payrolls numbers for May pointed to strengthening labour conditions, ahead of the closely watched U.S. payrolls report due on Friday. A measure of service sector activity increased to a record high.
- President Joe Biden offered to scrap his proposed tax hike. In talks with Republicans, the Democrat offered to drop plans to hike corporate rates as high as 28%, and instead set a 15% minimum tax rate for companies.
- Asian stocks followed Wall Street lower on Friday morning as signs of a strengthening U.S. recovery boosted bets for higher inflation and an earlier tapering of Federal Reserve stimulus. Hang Seng index fell 59 points and Nikkei 225 index slid 141 points.
- Investors will be monitoring China’s response to an order signed by President Biden on Jun 3 with amended ban on U.S. investment into Chinese companies and named 59 firms with ties to China’s military or surveillance industries.
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 on 1 June after attempting to retest its high at 35,092, but there is no follow through candlestick to confirm the reversal as yet. The 20EMA is now rising and is acting as support at 34,360. As long as the 20EMA support holds, the bullish trend remains intact. Stochastic could be falling soon. A bearish MACD crossover is likely.
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 : 28,958
This index is expected to move within a rectangle consolidation zone that ranged from 27,500 to 29,570. It has been falling from the upper boundary and is now testing the 20EMA support at 28,860. A violation of the 20EMA would hint for further correction towards the lower end. Stochastic is at the overbought. MACD has turned bullish.
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTEC)
Last : 13,525
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 violated the 20EMA support and could be testing the trendline again. Stochastic is falling from the overbought region. A bearish MACD crossover is likely
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Recommendation: Long @ 4175
Target price: 4245
Protective stop: 4140
Price ended the day with a potential Shooting Star candlestick pattern on 1 June. The 20EMA is now acting as support at the moment at 4180. A violation of this 20EMA is likely to hint for a correction towards 4060. Price has to surpass the high for more upside. Stochastic is falling now but MACD remains bullish.
Buy at 4175 for 4245 with a stop below 4140. Entry order was filled on 3 June.