- Wall Street rose on Tuesday, with both the blue-chip Dow and benchmark S&P 500 closing at record highs, as economically sensitive value stocks gained with the U.S. Senate’s passage of a $1 trillion bipartisan infrastructure package.
- The bill, which now heads to the House of Representatives, could provide the nation’s biggest investment in decades in roads, bridges, airports and waterways. Senators also began voting on a follow-up $3.5 trillion spending package that Democrats plan to pass without Republican votes.
- Investor will also watch inflation numbers this week for more insight into the Federal Reserve’s monetary policy plans, in the wake of comments from two Fed officials on Monday that inflation was already at a level that could satisfy one portion of the requirement for the beginning of rate hikes.
- Asia Pacific stocks were higher on Wednesday morning. Gains remained modest as investors continued to assess the impact of rising COVID-19 cases and central bank asset tapering on the global economy. Hang Seng index rose 116 points and Nikkei 225 index advanced 181 points.
- In cryptocurrencies, bitcoin remained above the $45,000-mark. Demand for the digital coin is soaring as the Senate blocked changes to reporting rules that govern cryptocurrencies when it passed the infrastructure plan.
Dow Jones Index
(CFD Symbol: US30)
Recommendation : Long @ 34,850
Last : 35,245
Target price: 35,150 Filled
Protective stop: 34,650
This index penetrated above its recent resistance high zone and created a new all-time high at 35,280 last night. The 20EMA is rising and is acting as support at 34,970. Stochastic is at the overbought region now but is still strong. MACD remains bullish and there is a bullish crossover.
Buy 34,850 for 35,150 with a stop below 34,650. Entry was filled on 5 August. Profit order was filled on 10 August.
Hang Seng Index
(CFD Symbol: HK50)
Last : 26,649
Price tested 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.
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTEC)
Last : 15,053
Target price :
Price has been stalling and it could be forming potential Double Top chart pattern. The 20EMA is acting as support, coinciding with the channel support at 14,960. A violation of 14,960 is likely to bring price lower towards 14,330. Stochastic is at the overbought region now. MACD is still bullish but has given divergence warning.
Wait for better trading idea.
S&P 500 Index
(CFD Symbol: US500)
Price is currently supported by the rising 20EMA support at 4396. A new high at 4444 was created at last night, but ended the day with a Doji candlestick pattern. Stochastic is at the overbought region now. MACD remains bullish but has given divergence warning.
Buy 4380 for 4445 with a stop below 4345.