- U.S. stocks ended higher on Thursday, boosted by robust U.S. earnings and forecasts, while data showed the economy recovered to pre-pandemic levels in the second quarter. Dow Jones rose 153 points, S&P 500 was up 18 points and Nasdaq Composite advanced 15 points.
- The U.S. economy grew solidly in the second quarter, putting the level of gross domestic product above its pre-pandemic peak, but the pace of GDP growth was slower than economists had expected. Among the latest upbeat earnings news, shares of Ford Motor jumped 3.8% as the company lifted its profit forecast for the year.
- Reassurances from Chinese regulators and official media have helped to soothe investors’ nerves, as have statements from the U.S. Fed that its bond-buying programme will remain unchanged for now. The U.S. posted strong second-quarter growth helped by rising vaccinations and government aid, but the expansion fell short of expectations.
- Asian shares slipped on Friday, with a gauge of regional equities set for its biggest monthly drop since the height of global pandemic lockdowns last March, while the dollar lagged near one-month lows on expectations of continued Fed stimulus. Hang Seng index plunged 553 points and Nikkei 225 index fell 452 points.
- Oil prices dipped in the morning of Asia trading hours, with Brent crude futures down 0.46% to $75.71 per barrel. U.S. crude futures lower by 0.45% to $73.27 per barrel.
Dow Jones Index
(CFD Symbol: US30)
Last : 34,982
This index has been testing the resistance high for the past few days, but several attempts to breakout of the high had failed. The 20EMA is acting as support at 34,800. If price cannot breakout of this resistance, a correction is likely to follow. Stochastic is at the overbought region 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)
Last : 25,755
This index has been falling sharply after violating its previous low support zone and the rising trendline that formed since March 2020. Price retested the trendline but attempts to break above the rising trendline had failed. We are likely to see more downside towards 24,380. Stochastic is near to the oversold region now and MACD is bearish.
Sell 26,200 for 24,900 with a stop above 26,500.
Nasdaq 100 Index
(CFD Symbol: USTEC)
Recommendation : Long @ 14,800
Last : 14,858
Target price : 15,125
Protective stop: 14,600
A new high was created at 15,142 on Monday. However, a one-day price decline thereafter has brought price lower to test the 20EMA support at 14,800. If price manage to stay above the 20EMA, it can move higher again, else, we are likely to see a sharper correction towards 14,320. Both Stochastic and MACD are giving divergence warning.
Buy 14,800 for 15,125 with a stop below 14,600. Entry was filled on 27 July.
S&P 500 Index
(CFD Symbol: US500)
Price created a new high at 4429 last night but ended the day with a Spinning Top candlestick pattern. With the divergence warning given from both Stochastic and MACD, it could be a sign of a correction towards the 20EMA at 4360. Stochastic is at the overbought region now. MACD remains bullish.
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