CFD Indices – Wall Street Rallied On Economic Optimism

Market News

  • Wall Street ended sharply higher on Tuesday, rebounding from a multi-day losing streak as a string of upbeat earnings reports and revived economic optimism fueled a risk-on rally. All three major U.S. stock indexes gained more than 1% with the blue-chip Dow, on the heels of its worst day in nine months, leading the charge.
  • Benchmark U.S. Treasury yields bounced back from five-month lows, in the wake of their biggest single-session decline since February in the prior session. This helped boost rate-vulnerable banks by 2.6%.
  • Mounting concerns over the highly contagious Delta variant of COVID-19, now responsible for the majority of new infections, have sparked sell-offs in recent sessions as worldwide vaccination efforts gather momentum.

Market Views

  • Asia Pacific stocks were mixed on Wednesday morning, with U.S. counterparts recording their biggest advance since March 2021. Hang Seng index fell 73 points while Nikkei 225 index rose 162 points.
  • Oil prices resumed its falls on Wednesday morning after a rebound on Tuesday, with U.S. crude down 0.4% at $66.93 per barrel and Brent at $69.12, down 0.33% on the day.

Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation : Long @ 34,600
Last : 34,514
Target price: 35,080
Protective stop: 34,350 Triggered

Price hit its previous high last Friday, but closed with a bearish candlestick. It could be a sign of a correction ahead as price may form a potential Double Top chart pattern. Price is currently testing the 20EMA resistance. If it cannot surpass this resistance at 34,560, a decline is likely to follow. Stochastic is falling from the overbought region now. MACD has turned bullish but just had a bearish crossover.

Trading Idea
Buy 34,600 for 35,080 with a stop below 34,350. Entry order was filled on 16 July. Stop was triggered on 19 July.

Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 27,131
Target price:
Protective stop:

This index attempted to move higher but its attempt was halted by the falling 20EMA which is acting as first layer of resistance. We are likely to see a price correction again. Do watch out if price can form a higher low form the base low. Stochastic is falling now and MACD has turned bearish.

Trading Idea
Wait for better trading idea

Nasdaq 100 Index
(CFD Symbol: USTEC)
Trend :
Recommendation :
Last : 14,709
Target price :
Protective stop:

The price correction could have halted as price is supported by the rising 20EMA support. This could be a sign that the rally can continue if price can hold above the 20EMA. Stochastic is falling from the overbought region now. MACD is still bullish but had a bearish crossover

Trading Idea
Buy 14,600 for 15,000 with a stop below 14,400.

S&P 500 Index
(CFD Symbol: US500)
Recommendation: Long @ 4325
Last: 4321
Target price: 4390
Protective stop: 4285 Triggered

Price has been retracing after reaching a high on 13 July. It managed to stay above the trendline breakout level despite having a one-day violation. It is now moving above the 20EMA and if it can hold above, we are likely to see price testing its high again. Stochastic is falling now. MACD remains bullish.

Trading Idea
Buy 4325 for 4390 with a stop below 4285. Entry order was filled on 16 July. Stop was triggered on 19 July.

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