- S&P 500 index closed at record high on Tuesday on gains in Apple and healthcare stocks, despite concerns over a surge in the Delta variant of the coronavirus taking some shine off an upbeat corporate earnings season. Dow Jones advanced 278 points and Nasdaq Composite rose 80 points.
- Even though the pandemic is still with us in certain places, the broad shutdowns of economies are not going to happen. The consumption patterns are super strong, which is the underlying factor that really keeps markets up, said Jamie Cox, managing partner at Harris Financial Group in Richmond, Virginia.
- Data on Tuesday showed U.S. factory orders rose 1.5% in June after a 2.3% increase in the previous month. Economists polled by Reuters had expected a rise of 1% in June. Later in the week, focus will shift to data on the U.S. services sector and the monthly jobs report for July.
- Asia Pacific stocks were mixed on Wednesday morning as investors digested the latest economic data from China. The country’s clampdown on various sectors and the spread of the COVID-19 virus’ Delta variant globally capped gains. Hang Seng index surged 399 points while Nikkei 225 index fell 38 points.
- Chinese shares in the U.S. slid, with speculation growing that the online gaming could be the next industry to be included in China’s recent regulatory crackdown on sectors including private education and technology.
Dow Jones Index
(CFD Symbol: US30)
Last : 35,079
This index has been hovering around the resistance high and the 20EMA support since late July. It has to penetrate above the resistance high of 35,190 for more upside on the breakout. A violation of the 20EMA at 34,850 will hint for a correction. Stochastic is at the overbought region now. MACD remains bullish.
Buy 34,850 for 35,150 with a stop below 34,650
Hang Seng Index
(CFD Symbol: HK50)
Recommendation : Short @ 26,200
Last : 26,607
Target price: 24,900
Protective stop: 26,500 Triggered.
There is a price rebound after hitting a low at 24,752 on 27 July. Price penetrated the trendline resistance and is going to test the overhead 20EMA resistance at 26,880, which is also the support-turned-resistance zone as well as the gap resistance. Stochastic is rising now but is still weak. MACD is bearish despite having a bullish crossover.
Sell 26,200 for 24,900 with a stop above 26,500. Entry was filled on 2 August 2021. Stop was triggered on 4 August.
Nasdaq 100 Index
(CFD Symbol: USTEC)
Recommendation : Long @ 14,800
Last : 15,056
Target price : 15,125
Protective stop: 14,600
Price is supported by the rising 20EMA which coinciding with the rising trendline support. This index is moving within a price channel. We are likely to see a test towards the upper boundary of the channel at 15,380. Stochastic is rising now. MACD is still bullish and a bullish crossover is likely
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 is currently supported by the rising 20EMA support at 4373. It is moving between the resistance high and the 20EMA. It has to surpass the resistance high of 4429 for more upside on the breakout. Stochastic is at the overbought region now. MACD remains bullish.
Buy 4380 for 4445 with a stop below 4345