- Dow Jones and S&P 500 edged up to closing records on Friday and notched a second straight week of gains, buoyed by a climb of 1% gain in Walt Disney shares, but a sharp drop in consumer sentiment kept gains in check.
- A report from the University of Michigan dented optimism after it showed the university’s preliminary consumer sentiment index fell to 70.2, its lowest level in a decade, suggesting that the Delta variant of the coronavirus was impacting consumers.
- JPMorgan economist Bruce Kasman said China is in the midst of removing policy supports, which looks likely to restrain domestic demand growth and weigh on regional performance through the rest of this year, which will result in lowering 2H21 regional growth forecasts.
- Asian markets slipped on Monday morning after a raft of Chinese data showed a surprisingly sharp slowdown in the engine of global growth, just as much of the world races to stem the spread of the Delta variant of COVID-19 with vaccinations. Hang Seng index slipped 212 points and Nikkei 225 index plunged 536 points.
- Central banks are also in the spotlight, with U.S. Federal Reserve Chairman Jerome Powell speaking at a town hall discussion with educators on Tuesday and the Federal Open Market Committee releasing the minutes from its latest meeting a day later.
Dow Jones Index
(CFD Symbol: US30)
Last : 35,377
A Shooting Star candlestick pattern was seen after the Hanging Man candlestick pattern, which could be giving a sign of possible top. A price correction towards the 20EMA, which is also the breakout level at 35,110, is likely to follow. Stochastic is at the overbought region now. MACD remains bullish with a bullish crossover.
Buy 35,150 for 35,600 with a stop below 34.900.
Hang Seng Index
(CFD Symbol: HK50)
Last : 26,149
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.
Sell 26,600 with a stop above 27,050 for 25,500.
Nasdaq 100 Index
(CFD Symbol: USTEC)
Last : 15,111
Target price :
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 15,000. 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.
Wait for better trading ideas.
S&P 500 Index
(CFD Symbol: US500)
A new high at 4468 was created at last Friday. Price has been moving along with the rising 20EMA which is acting as support at 4414. Stochastic is at the overbought region now. MACD remains bullish but has given divergence warning.
Buy 4380 for 4465 with a stop below 4345.