- S&P 500 ended modestly higher in a choppy session on Thursday, with gains in tech shares countering losses in cyclical sectors, as investors took the pulse of the economic rebound and gauged when the Federal Reserve might temper its monetary stimulus.
- Data showed that the number of Americans filing new claims for unemployment benefits fell to a 17-month low last week, pointing to another month of robust job growth.
- Focus is shifting to the Fed’s annual research conference in Jackson Hole next week for any read about the central bank’s next steps towards asset tapering and interest rate hikes, with the minutes from the latest Fed meeting hinting that the former could start as soon as 2021.
- Asia Pacific stocks plunged on Friday morning, with concerns about the spread of COVID-19’s Delta strain and the possibility of earlier-than-expected central bank asset tapering continuing to dim the economic outlook. Hang Seng index slumped 610 points and Nikkei 225 index slid 184 points.
- A Reuters survey showed China is expected to keep rate unchanged for the 16th straight month, but some traders and analysts believe a cut may be needed soon amid signs the country’s economic recovery is losing steam, a Reuters survey showed.
Dow Jones Index
(CFD Symbol: US30)
Recommendation : Long @ 35,150
Last : 34,817
Target price: 35,600
Protective stop: 34,900 Triggered
Price is now testing the key rising trendline support that formed since Feb 2021. This trendline has supported price decline for the fifth occasions last night, ending the day with a Doji candlestick. We would like to see a bullish candle for a rebound today. A violation of this trendline will hint for further correction. Stochastic is falling now. MACD remains bullish.
Buy 35,150 for 35,600 with a stop below 34.900. Entry order was filled on 17 August. Stop was triggered on 18 August.
Hang Seng Index
(CFD Symbol: HK50)
Last : 24,655
Price continues to slide after being capped by the 20EMA resistance, which is also the support-turned-resistance zone as well as the gap resistance. It further violates its previous low support today, hinting at more downside ahead. Stochastic is falling now. MACD is bearish and having a bearish crossover.
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTEC)
Last : 14,923
Target price :
Price has been stalling at the all-time high resistance zone. It has violated the 20EMA support, which is now moving lower, suggesting potential downside ahead. If price cannot stand back above the 20EMA, we could see price falling towards the trendline support. Stochastic is falling now. MACD has turned bearish with the fast line below the zero line
Buy 14,750 with a stop below 14,600 for 15,100
S&P 500 Index
(CFD Symbol: US500)
Recommendation: Long @ 4420
Target price: 4480
Protective stop: 4385 Triggered
A new high at 4481 was created on 16 Aug. Price violated the 20EMA support which is now moving lower, suggesting potential bearishness ahead. If price cannot hold above the 20EMA, more downside can be expected. Stochastic is falling now. MACD has turned bearish with the fast line below the zero line.
Buy 4420 for 4480 with a stop below 4385. Entry was filled on 18 August. Stop was triggered on 19 August.