- The three major U.S. stock indexes rallied to record closing highs on Friday as financials and other economically focused sectors rebounded from a selloff sparked by growth worries earlier in the week. Dow Jones surged 448 points, S&P 500 rose 48 points and Nasdaq Composite gained 142 points.
- A big jump in quarterly earnings is expected to mark a peak for U.S. profit growth in the recovery from last year’s pandemic-induced collapse. Investors are looking to U.S. companies’ upcoming quarterly results and forecasts about the recovery in the second half of 2021 as some worry that the recent economic surge is already waning.
- The U.S. will release the core consumer price index (CPI) and the producer price index for June later this week. Investors will also be monitoring testimony by Powell on Wednesday and Thursday to give clues on the possibility of any talk of early tapering.
- Asian shares were enjoying a relief rally on Monday morning as record highs on Wall Street and policy easing in China helped calm some of the recent jitters on global growth, though plenty of potential pitfalls lay ahead this week. Hang Seng index rose 94 points and Nikkei 225 index advanced 640 points.
Oil prices steadied on Monday after ending a volatile week with a bounce as U.S. inventories tightened. Dealers are still uncertain about the outlook for supplies after OPEC talks on restrictions broke down.
Dow Jones Index
(CFD Symbol: US30)
Recommendation : Long@34,400
Last : 34,807
Target price: 34,880 Triggered
Protective stop: 34,100
The recent pullback was able to halt at the rising 20EMA which is acting as support at the moment. This index is now testing the resistance zone for the fourth times. As long as price moves along with the 20EMA, price is likely to test its high at 35,092. Stochastic is at the overbought region now. MACD has turned bullish.
Buy 34,400 for 34,880 with a stop below 34,100. Entry was filled on 8 July. Profit order was filled on 9 July
Hang Seng Index
(CFD Symbol: HK50)
Last : 27,429
This index broke and closed below the lower end of the rectangle consolidation zone that started since March 2021. It is now trying to move back inside the zone and if this is successful, price is likely to test the 20EMA at 28,280. Conversely, we could see more downside ahead. Stochastic is rising at the oversold region but MACD has turned bearish.
Buy 27,300 for 28,200 with a stop below. 26,820
Nasdaq 100 Index
(CFD Symbol: USTEC)
Last : 14,808
Target price :
Price reached a high at 14,892 on 7 July, which is also the Fibonacci 161% projection level. A Bearish Engulfing candlestick pattern was seen last night, hinting at possible top. We are likely to see a price correction towards the 20EMA at 14,480. Price has to surpass recent high for more upside. Stochastic is currently in the overbought region. MACD is still bullish but has been given divergence warning
Wait for better trading idea.
S&P 500 Index
(CFD Symbol: US500)
Price broke out from the Triangle chart pattern on 25 June. It is now having a price correction and price is sitting at the 20EMA support, which is also the upper Triangle trendline support at 4289. If price can sustain at this support, we are likely to see price resuming its upward movement. Stochastic is in the overbought region now. MACD remains bullish.
Wait for better trading idea.