- Wall Street stocks struggled to eke out closing gains on Tuesday as a lack of clear market catalysts kept institutional investors on the sidelines, while retail traders fueled the ongoing meme stocks rally. Dow Jones fell 30 points while Nasdaq Composite rose 43 points.
- Reports from the U.S. Labour Department and National Federation of Independent Business appeared to confirm a labour shortage even as demand roars back to life, which could put upward pressure on wages, a precursor to wider inflation.
- U.S.-China relations are also back in the spotlight as the U.S. Senate passed a bill to counter the economic as well as strategic challenge from China. The U.S. Innovation and Competition Act of 2021 bill to invest almost $250 billion in bolstering U.S. manufacturing and technology passed on Tuesday by a 68-32 vote.
- Asia Pacific stocks were mixed on Wednesday morning as investors digested mixed inflation data from China while awaiting the same data from the U.S later in the week. Hang Seng index rose 12 points while Nikkei 225 index fell 95 points.
- Chinese consumer price index (CPI) for May, released earlier in the day missed forecasts, contracting 0.2% month-on-month and growing 1.3% year-on-year. However, the producer price index (PPI) exceeded expectations, growing 9% year-on-year.
Dow Jones Index
(CFD Symbol: US30)
Recommendation : Long @ 34,540
Last : 34,594
Target price: 35,000
Protective stop: 34,300
This index is still rising along with the 20EMA which is acting as support at 34,440. Watch out for the key 20EMA support. As long as the 20EMA support holds, the bullish trend remains intact. However, a violation of the 20EMA would hint for a correction as there is a bearish MACD crossover. Stochastic is at the overbought region as well.
Buy at 34,540 for 35,000, with a stop below 34,199. Entry order was filled on 28 May. Moves Stop higher to 34,300 on & June.
Hang Seng Index
(CFD Symbol: HK50)
Last : 28,781
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 hovering around the 20EMA support. A further violation of 28,620 could hint for deeper correction towards the lower end. Stochastic is falling now. MACD has turned bullish.
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTEC)
Last : 13,821
Target price :
A Spinning Top candlestick pattern was formed last night, which could be a sign of a reversal. We would like to see a follow-through bearish candlestick to confirm the reversal. There is also potential divergence warning given from the MACD. If there is a follow-through candlestick, we are likely to see price retracing back to the rising trendline support that formed since November 2020. Stochastic is at the overbought region now.
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Recommendation: Long @ 4175
Target price: 4245
Protective stop: 4160
Price is approaching its high of 4244. It has been supported by the rising 20EMA which is acting as support at the moment at 4195. As long as the 20EMA holds, we could see price hitting the high. Else, a correction is likely. Stochastic is still strong now and MACD remains bullish.
Buy at 4175 for 4245 with a stop below 4140. Entry order was filled on 3 June. Moves Stop higher to 4160 on 7 June.