- Wall Street stocks ended higher on Thursday, with the S&P 500 closing above its prior record high set on May 7, as economic data appeared to support the Federal Reserve’s assertion that the current wave of heightened inflation will be temporary.
- The Labour Department’s consumer price index (CPI) data came in above consensus and added fodder to the debate over whether current price spikes could transform into long-term inflation, despite the Fed’s assurances to the contrary.
- A U.S. House of Representatives committee passed a $547 billion infrastructure spending bill targeting surface transportation, adopting some of President Joe Biden’s proposals as part of his broader $2.3 trillion infrastructure package.
- Asia Pacific stocks were mixed on Friday morning after the U.S. released higher-than-expected inflation data on Thursday. Investors bet price pressures will be temporary and that central banks will keep their stimulus measured unchanged for a while. Hang Seng index rose 114 points while Nikkei 225 index fell 35 points.
- The 10-year U.S. Treasury note’s yield dipped to a three-month low of 1.4340%, down from Thursday’s close of 1.459%. The 30-year yield was at 2.1270%, its lowest level since Feb. 26. The spread between the 2-year and 10-year yield also hit its narrowest level since late February, as inflation expectations eased.
Dow Jones Index
(CFD Symbol: US30)
Recommendation : Long @ 34,540
Last : 34,466
Target price: 35,000
Protective stop: 34,300
This index is testing the 20EMA which is acting as support at 34,430. 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 falling 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 : 28,850
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.
Buy 28,750 for 29,400 with a stop below 28,550.
Nasdaq 100 Index
(CFD Symbol: USTEC)
Last : 13,970
Target price :
Price rebounded from the 20EMA support and is going to test its recent high at 14,076. The 20EMA will provide support at 13,700. As long as the 20EMA holds, price could go higher. A violation of the 20EMA support could lead price retracing back to the rising trendline support that formed since November 2020. Stochastic is at the overbought region now. MACD is still bullish but the histogram could be forming potential divergence warning.
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Recommendation: Long @ 4175
Target price: 4245 Filled
Protective stop: 4160
A new high was created last night at 4249. Price has been moving along with the rising 20EMA which is acting as support at 4203. The next resistance comes in at 4370. Watch out for any reversal candlestick pattern as there is divergence warning given from both Stochastic and MACD. Stochastic is at the overbought region 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. Profit order was filled on 10 June.