- The Nasdaq ended at a record high on Tuesday, lifted by Amazon, Microsoft and other top-shelf tech companies as investors shifted their focus to growth stocks. Dow Jones and S&P 500 gained 68 and 21 points respectively as well.
- In a congressional hearing, meanwhile, Fed Chair Jerome Powell reaffirmed the U.S. central bank’s intent to encourage a “broad and inclusive” recovery of the job market and not to raise interest rates too quickly based only on the fear of coming inflation.
- A group of state attorneys general may file a lawsuit against Alphabet Inc’s Google as early as next week, accusing the search and advertising giant of violating antitrust law in running its mobile app store, according to three sources familiar with the matter.
- Asia Pacific stocks were mostly higher on Wednesday morning, with reassuring comments from U.S. Fed officials on inflation and monetary policy starting to calm investors’ frayed nerves. Hang Seng index rose 284 points and Nikkei 225 index gained 32 points.
- Minutes from the Bank of Japan’s April monetary policy meeting released Wednesday showed members agreed that stimulus measures, particularly those in advanced economies, could result in a “faster than expected” pace of recovery for Japan and other countries.
Dow Jones Index
(CFD Symbol: US30)
Recommendation : Short @ 33,200
Last : 34,034
Target price: 32,350
Protective stop: 33,650 Triggered
Price formed a bullish engulfing reversal candlestick pattern and had a sharp rebound after price penetrated its previous low of 33,285. The trend remains bearish with the falling 20EMA. We could see price being resisted at the 20EMA which is acting as resistance at 34,150. Stochastic is rising now but MACD has turned bearish.
Sell 33,200 for 32,350 with a stop above 33,650. Entry and stop were done on 21 June.
Hang Seng Index
(CFD Symbol: HK50)
Recommendation : Short @ 28,550
Last : 28,688
Target price: 27,850
Protective stop: 28,950
Last Friday, price failed to penetrate above the 20EMA resistance. This index is still expected to move within a rectangle consolidation zone that ranged from 27,500 to 29,570 until either end is broken. This could hint that price is likely to test the lower end near 27,620 again if it fails to penetrate the 20EMA. Stochastic is rising now and a bullish MACD crossover is likely
Sell 28,550 with a stop above 28,950 for 27,850. Entry was filled on 23 June.
Nasdaq 100 Index
(CFD Symbol: USTEC)
Recommendation : Short @ 14,200
Last : 14,308
Target price : 13,880
Protective stop: 14,400
As there is no follow-through bearish candlestick that confirms the reversal, the potential Tweezer Top pattern is forfeited. Price continues to move higher and creates new high at 14,289 last night. The 20EMA is rising and is acting as support at 13,950. Stochastic is currently in the overbought region. MACD is still bullish but there is a divergence warning.
Sell 14,200 for 13,880 with a stop above 14,400. Entry was filled on 24 June.
S&P 500 Index
(CFD Symbol: US500)
Price could be consolidating within a Triangle pattern. It is going to test its overhead trendline resistance at 4275. If price is able to breakthrough the upper trendline resistance, a higher target can be seen. Else, a correction towards the lower trendline is likely. Stochastic is rising now. MACD remains bullish but it has given a divergence warning.
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