- Wall Street gained ground for the fourth straight session on Friday, extending a rally that pushed all three major U.S. stock indexes to record closing highs as upbeat earnings and signs of economic revival fueled investor risk appetite.
- Market participants now look toward next week with the Fed’s two-day monetary policy meeting as it will be parsed for clues regarding the time frame for tightening its accommodative policies, although Chairman Powell has repeatedly said the economy still needs the central bank’s full support.
- Tensions between China and U.S. were high as they hold their first high-level U.S.-China talks since March 2021. As the talks began earlier in the day, Chinese foreign vice-minister Xie Feng told Sherman that relations between the two countries had reached a “stalemate” and faced “serious consequences”.
- Asia Pacific stocks were mixed on Monday morning as a technology-sector crackdown in China and the upcoming U.S. Fed policy decision, linger on investors’ minds. Hang Seng index slid 677 points while Nikkei 225 index rose 385 points.
- U.S. bond market has been remarkably untroubled by the prospect of eventual tapering with yields on 10-year notes having fallen for four weeks in a row to stand at 1.28%. The drop has done little to undermine the dollar, in part because European yields have fallen even further amid expectations of continued massive bond buying from the European Central Bank.
Dow Jones Index
(CFD Symbol: US30)
Last : 34,894
This index hit the resistance high for the third occasions last Friday, which in turn capped price’s rally. It has to penetrate this resistance for more upside ahead. Else, a correction towards 34,260 is likely. Stochastic is rising now. MACD has turned bullish but is relatively weak.
Buy 34,300 for 35,000 with a stop below 34,000.
Hang Seng Index
(CFD Symbol: HK50)
Recommendation : Long @ 27,050
Last : 26,595
Target price: 27,800
Protective stop: 26,850
This index was capped by the falling 20EMA which is acting as resistance at the moment. Price gapped down today, violating its previous low support. This could be a sign that price could go further lower. Stochastic is still falling now. MACD is bearish now.
Buy 27,050 for 27,800 with a stop below 26,850. Entry and stop were triggered on 26 July.
Nasdaq 100 Index
(CFD Symbol: USTEC)
Last : 15,094
Target price :
A new high was created at 15,128 last Friday after being supported by the rising 20EMA support. Price is still moving within a rising channel. It is likely to move along with the 20EMA. Stochastic is rising now. MACD is still bullish and there is a bullish crossover.
Buy 14,800 for 15,125 with a stop below 14,600
S&P 500 Index
(CFD Symbol: US500)
Price created a new high at 4415 last Friday after being supported by the trendline support. It is now moving above the 20EMA and the 20EMA will be acting as support at 4340. Stochastic is rising now. MACD remains bullish and there is a bullish crossover.
Wait for better trading idea.