- The Nasdaq and the S&P 500 indexes closed at record highs on Thursday, with the Dow also jumping almost 1% after President Biden embraced a bipartisan Senate infrastructure deal. Tesla rose 3.5%, boosting S&P 500 after Elon Musk said he would list SpaceX’s space internet venture, Starlink, when its cash flow is reasonably predictable.
- Massive fiscal stimulus helped the U.S. economy grow at a 6.4% annualized rate in the first quarter with investors banking on an infrastructure agreement that could steer the next leg of the recovery for the world’s largest economy and fuel more stock gains.
- Initial claims for state unemployment benefits fell 7,000 to 411,000 for the week ended June 19, the Labour Department said on Thursday, but were still higher than the 380,000 that economists had forecast.
- Asian shares rose on Friday morning, tracking gains on Wall Street overnight that lifted the Nasdaq and the S&P 500 indexes to record highs after President Biden embraced a bipartisan Senate infrastructure deal. Hang Seng index surged 322 points and Nikkei 225 index rose 229 points.
- Oil prices climbed to near three-year highs, supported by drawdowns in U.S. inventories and accelerating German economic activity, with U.S. West Texas Intermediate crude rising 0.29% to $73.51 per barrel and global benchmark Brent crude at $75.77, up 0.28% on the day.
Dow Jones Index
(CFD Symbol: US30)
Last : 34,334
Price formed a bullish engulfing reversal candlestick pattern and had a sharp rebound after price penetrated its previous low of 33,285. It has moved above the 20EMA. As long as the 20EMA support holds at 34,170, price is likely to test the declining trendline at 34,180. Stochastic is rising now but MACD has turned bearish.
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Hang Seng Index
(CFD Symbol: HK50)
Recommendation : Short @ 28,550
Last : 29,218
Target price: 27,850
Protective stop: 28,950 Triggered
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. It is now moving above the 20EMA and is going to test the upper resistance again. Stochastic is rising now. MACD is bullish and there is a bullish MACD crossover.
Sell 28,550 with a stop above 28,950 for 27,850. Entry was filled on 24 June. Stop was triggered on 25 June.
Nasdaq 100 Index
(CFD Symbol: USTEC)
Recommendation : Short @ 14,200
Last : 14,384
Target price : 13,880
Protective stop: 14,400 Triggered
As there was no follow-through bearish candlestick to confirm the reversal, the potential Tweezer Top pattern is forfeited. Price continues to move higher and creates new high at 14,432 last night. The 20EMA is rising and is acting as support at 14,020. 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 23 June. Stop was triggered on 24 June.
S&P 500 Index
(CFD Symbol: US500)
Price could be consolidating within a Triangle chart pattern. It tested the upper end of the Triangle chart pattern last night. Price has to break above this upper resistance for more upside ahead. Else, a correction towards the lower end at 4180 is likely. Stochastic is rising now. MACD remains bullish but it has given a divergence warning.
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