CFD Indices – S&P 500 Closed At Record High, Boosted By Rising Energy Prices.

Market News

  • S&P 500 stretched its run of record daily closes to six on Thursday, boosted by energy on rising oil prices as major oil producers delayed their meeting by a day, while positive labour data buoyed expectations for a strong monthly jobs report due Friday.
  • OPEC+ delayed its meeting by one day to Friday after a key member, the United Arab Emirates, was unwilling to go along with the reported preliminary deal – a 0.5 million barrel per day hike – agreed to by Saudi Arabia and Russia on Thursday. The delay casts doubt on whether the major oil producers will be able to reach a consensus on a production hike.
  • Wages will likely be heavily scrutinized as companies are expected to have to pay up in order to attract employees, particularly in the services sector, at a time when the unemployment benefits has played a role in adding to labour supply shortage.  

Market Views

  • Asia Pacific stocks were mixed Friday morning, finding their feet on the first trading day of July. Investors await U.S. employment data even as they continue digesting economic data from the U.S. and China. Hang Seng index slid 499 points while Nikkei 225 index rose 84 points.
  • Investors now await the country’s jobs report for June, including non-farm payrolls, due later in the day. The data is expected to provide clues as to when the U.S. Federal Reserve could begin the asset tapering and interest rate hikes hinted at in June’s policy decision.

Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation : Long @34,250
Last : 34,659
Target price: 34,800
Protective stop: 33,915

This index is breaking out from a Triangle chart pattern after being supported by the rising 20EMA. This could lead to a rise towards its all-time high at 35,092 if price close firm tonight. Stochastic is rising now and is in the overbought region. MACD has turned bullish after having a bullish crossover.

Trading Idea
Buy 34,250 for 34,800 with a stop below 33,915. Entry was filled on 28 June.

Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation : Long @ 29,020
Last : 28,300
Target price: 29,570
Protective stop: 28,750 Triggered

This index remains in a sideways trend as it is still moving within a rectangle consolidation zone that ranged from 27,500 to 29,570. It broke below the 20EMA and is heading lower now. We could see price testing the lower boundary again. Stochastic is falling now. MACD is bullish but there is a bearish MACD crossover

Trading Idea
Buy 29,020 for 29,570 with a stop below 28,750. Entry was filled on 29 June. Stop was triggered on 1 July.

Nasdaq 100 Index
(CFD Symbol: USTEC)
Trend :
Recommendation :
Last : 14,531
Target price :
Protective stop:

Price has reached a high at 14,612 and is now consolidating as the sizes of candles for the past two days are smaller. If price close below 14,470, we could see price testing the 20EMA support at 14,230 as there are divergence warnings given from both Stochastic and MACD. Stochastic is currently in the overbought region. MACD is still bullish but a bearish crossover is likely.

Trading Idea
Wait for better trading idea.

S&P 500 Index
(CFD Symbol: US500)
Last: 4322
Target price:
Protective stop:

Price broke out from the Triangle chart pattern last Friday. It is a bullish sign and we could see price testing its next resistance at 4347. The 20EMA is acting as support at 4258. Stochastic is in the overbought region now. MACD remains bullish but it has given a divergence warning.

Trading Idea
Wait for better trading idea

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