CFD Indices – Strong Corporate Earnings Sent S&P500 & Nasdaq To Record High

Market News

  • Nasdaq and S&P 500 closed at record levels on Thursday after a spate of strong corporate earnings and a further decline in U.S. unemployment claims in the previous week, as investors weighed concerns of the surge of the Delta variant ahead of tonight’s job’s report.
  • Initial claims for state unemployment benefits fell by 14,000 to 385,000 in the week ended July 31, while layoffs dropped to their lowest level in more than 21 years last month as companies held on to their workers amid a labour shortage, the Labour Department’s report showed.
  • U.S. Treasuries continued their retreat, while the Bank of England indicated inflation concerns as it handed down its policy decision on Thursday. The Reserve Bank of India is due to hand its own decision down later in the day.

Market Views

  • Asian shares failed to catch a firm lead from a bumper Wall Street session on Friday as the spread of the Delta variant of the coronavirus across the region heightened worries about the its economic recovery. Hang Seng index fell 83 points while Nikkei 225 index rose 16 points.
  • Oil paused for breath in early Asian trading on Friday, but was set for its biggest weekly loss since October after falls earlier in the week due to rising COVID-19 cases and a surprise build in U.S. crude stockpiles.

Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation : Long @ 34,850
Last : 35,021
Target price: 35,150
Protective stop: 34,650

Outlook
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 34,860 will hint for a correction. Stochastic is at the overbought region now. MACD remains bullish.

Trading Idea
Buy 34,850 for 35,150 with a stop below 34,650. Entry was filled on 5 August

Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 26,166
Target price:
Protective stop:

Outlook
Price was resisted by the 20EMA resistance, which is also the support-turned-resistance zone as well as the gap resistance. It has to penetrate this strong resistance zone for more upside. Else, we are likely to see a price decline again. Stochastic is rising now but is still weak. MACD is bearish despite having a bullish crossover.

Trading Idea
Wait for better trading idea

Nasdaq 100 Index
(CFD Symbol: USTEC)
Trend :
Recommendation : Long @ 14,800
Last : 15,174
Target price : 15,125 Filled
Protective stop: 14,600

Outlook
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.

Trading Idea
Buy 14,800 for 15,125 with a stop below 14,600. Entry was filled on 27 July. Profit target was reached on 5 August.

S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 4426
Target price:
Protective stop:

Outlook
Price is currently supported by the rising 20EMA support at 4382. It is moving between the resistance high and the 20EMA. It has to surpass the resistance high of 4430 for more upside on the breakout. Stochastic is at the overbought region now. MACD remains bullish

Trading Idea
Buy 4380 for 4445 with a stop below 4345.

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