CFD Indices – Persistent Concerns Over Inflation Weigh On Wall Street

Market News

  • U.S. stocks closed modestly higher at the end of a torpid week marked with few market-moving catalysts and persistent concerns over whether current inflation spikes could linger and cause the U.S. Federal Reserve to tighten its dovish policy sooner than expected.
  • The Fed has repeatedly said that near-term price surges will not metastasize into lasting inflation, an assertion reflected in the University of Michigan’s Consumer Sentiment report released on Friday, which showed inflation expectations easing from last month’s spike.
  • The Food and Drug Administration is facing mounting criticism over its “accelerated approval” of Biogen’s Alzheimer’s drug Aduhelm without strong evidence of its ability to combat the disease, causing Biogen shares ended down 4.4%, while the broader healthcare sector shed 0.7%.

Market Views

  • Shares in Asia-Pacific were higher in Monday morning trade, with multiple major markets in the region closed for holidays. Hang Seng index rose 103 points and Nikkei 225 index gained 160 points.
  • In the cryptocurrency space, bitcoin jumped more than 9% to trade at $39,140.59, as of 9:58 p.m. ET Sunday. Those gains came after Tesla CEO Elon Musk said the electric vehicle maker will resume bitcoin transactions once it confirms reasonable clean energy usage by miners with positive future trend.

Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation : Long @ 34,540
Last : 34,493
Target price: 35,000
Protective stop: 34,300

This index is testing the 20EMA which is acting as support at 34,440. The 20EMA is flat now and could be turning lower. 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.

Trading Idea
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)
Trend :
Recommendation : Long @ 28,750
Last : 28,791
Target price: 29,400
Protective stop: 28,550


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.

Trading Idea
Buy 28,750 for 29,400 with a stop below 28,550. Entry order was filled on 11 June

Nasdaq 100 Index
(CFD Symbol: USTEC)
Trend :
Recommendation :
Last : 14,021
Target price :
Protective stop:

Price rebounded from the 20EMA support and is going to test its recent high at 14,076. A correction towards the 20EMA support at 13,730 could be likely if price cannot surpass 14,076. The bullish trend is remained on track now. Stochastic is at the overbought region now. MACD is still bullish and both of its lines are moving higher.

Trading Idea
Wait for better trading idea

S&P 500 Index
(CFD Symbol: US500)
Last: 4249
Target price:
Protective stop:

A new high of 4249 was created on 10 June. The sizes of the following candles are relatively small, which could be sign of indecision. Price has to surpass 4249 for more upside ahead. Else, a correction towards the 20EMA at 4207 is likely. Stochastic is at the overbought region now and MACD remains bullish.

Trading Idea
Wait for better trading idea

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