Market News
- The Dow and S&P 500 jumped to record closes for a third straight day on Thursday, with mega-cap technology stocks driving the market higher as investors warmed to jobs data showing a steady U.S. economic recovery. Apple, Microsoft, Amazon, Google parent Alphabet and Facebook are main leaders.
- Data on Thursday showed U.S. producer prices posted their largest annual increase in more than a decade last month, raising inflation concerns, after Wednesday’s U.S. consumer price index reading indicated the pace appeared to be slowing.
- The dollar held firm on Friday, staying near its highest level in four months against a basket of currencies as investors looked for more hints from the Federal Reserve on its plans to reduce monetary stimulus.
Market Views
- Most Asian equity markets were mixed and continued to ignore record highs hit elsewhere in the world and fell in early trading on Friday, though Australia bucked the trend. Hang Seng index fell 251 points while Nikkei 225 index gained 27 points.
- Oil prices fell for a second straight day after the International Energy Agency warned that demand growth for crude and its products had slowed sharply.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 35,497
Target price:
Protective stop:
Outlook
This index continued to move higher after penetrating above its recent resistance high zone and created a new all-time high at 35,531 last night. The 20EMA is rising and is acting as support at 35,090, coinciding with the breakout level. The next resistance lies at 36,370. Stochastic is at the overbought region now but is still strong. MACD remains bullish with a bullish crossover.
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 26,263
Target price:
Protective stop:
Outlook
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.
Trading Idea
Sell 26,600 with a stop above 27,050 for 25,500.
Nasdaq 100 Index
(CFD Symbol: USTEC)
Trend :
Recommendation :
Last : 15,080
Target price :
Protective stop:
Outlook
Price has been stalling and it could be forming potential Double Top chart pattern. It slightly violated the rising channel, but the 20EMA is acting as support at 14,980. Watch out for the key 20EMA support. If price can sustain above the 20EMA, there is chance for this index moving higher again. Stochastic is still at the overbought region now. MACD is still bullish but has given divergence warning.
Trading Idea
Buy 15,000 with a stop at 14,900 for 15,200
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 4459
Target price:
Protective stop:
Outlook
A new high at 4461 was created at last night. Price has been moving along with the rising 20EMA which is acting as support at 4409. Stochastic is at the overbought region now. MACD remains bullish but has given divergence warning.
Trading Idea
Buy 4380 for 4460 with a stop below 4345.
