- U.S. stocks fell on Friday and registered losses for the week as shares of Amazon dropped after the company forecast lower sales growth, but the S&P 500 still notched a sixth straight month of gains. Dow Jones fell 149 points and Nasdaq Composite lost 105 points.
- Amazon shares sank 7.6% – their biggest daily percentage drop since May 2020 – after the company reported late on Thursday revenue for the second quarter that was shy of analysts’ average estimate and said sales growth would ease in the next few quarters as customers ventured more outside the home.
- Strong earnings and the continued rebound in the U.S. economy have helped to support stocks this month, but the rapid spread of the Delta variant of the coronavirus and rising inflation have a been concern.
- Asian shares rose on Monday morning as a run of stellar U.S. corporate earnings put a floor under markets, though Beijing’s regulatory crackdown continued to reverberate amid disappointing economic news. Hang Seng index surged 323 points and Nikkei 225 index advanced 458 points.
- A shift in China’s regulatory regime was underway that held implication well beyond the tech sector. Regulatory tightening in the world’s second largest economy intended to reduce inequality and make housing and goods more affordable is deflationary, something that the many bond bears need to consider.
Dow Jones Index
(CFD Symbol: US30)
Last : 35,083
This index has been testing the resistance high for the past few days. The 20EMA is acting as support at 34,830. If price cannot break out of this resistance, a correction is likely to follow. Stochastic is at the overbought region now. MACD remains bullish but is relatively weak.
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Recommendation : Short @ 26,200
Last : 26,200
Target price: 24,900
Protective stop: 26,500
This index has been falling sharply after violating its previous low support zone and the rising trendline that formed since March 2020. Price is testing the trendline resistance now. If price can move above this resistance, then we are likely to see a test towards 20EMA at 26,990. Stochastic is rising now but MACD is bearish.
Sell 26,200 for 24,900 with a stop above 26,500. Entry was filled on 2 August 2021
Nasdaq 100 Index
(CFD Symbol: USTEC)
Recommendation : Long @ 14,800
Last : 15,037
Target price : 15,125
Protective stop: 14,600
Price is supported by the rising 20EMA support. The decline appears to be halted at this support and there is a price rebound. However, price has to surpass its recent high of 15,142 for more upside ahead. Stochastic is falling now but MACD is still bullish.
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 on Thursday but ended the day with a Spinning Top candlestick pattern. However, there is no follow-through candle that confirms the reversal. It has to surpass its high for more upside ahead. Stochastic is at the overbought region now. MACD remains bullish.
Buy 4380 for 4445 with a stop below 4345