- Wall Street rallied on Friday, pushing the S&P and the Nasdaq to record closing highs for the fourth time this week, as Fed Chair Jerome Powell’s remarks at the Jackson Hole Symposium calmed fears over the tapering timetable and sent investors into the weekend in a buying mood.
- Powell stopped short of providing a clearer picture regarding the timing of the central bank’s tapering of asset purchases or hiking interest rates, the key elements of its dovish monetary policy aimed at helping the economy recover from the pandemic recession.
- Economic data released on Friday delivered, in large part, precisely what economists expected – a pullback in consumer spending and sentiment due to the COVID-19 Delta variant, and signs that the current wave of price spikes will not morph into long term inflation, in line with Fed assurances.
- Asia Pacific stocks were mixed on Monday morning over on U.S. Fed Chair Jerome Powell’s dovish speech to withdraw stimulus measures cautiously and gradually. Hang Seng index fell 16 points while Nikkei 225 index rose 77 points.
- Oil prices pared early gains on Monday, off more than three-week highs reached earlier in the session as a powerful hurricane ploughing through the Gulf of Mexico forced shutdowns and evacuations of hundreds of offshore oil platforms.
Dow Jones Index
(CFD Symbol: US30)
Last : 35,465
Price is supported by the rising 20EMA which is acting as support at 35,240. If it can surpass its recent high of 35,449, we are likely to see price testing its all-time high at 35,628. Stochastic is still rising now. MACD remains bullish and a bullish crossover is likely.
Buy 35,230 for 35,600 with a stop below 34,950
Hang Seng Index
(CFD Symbol: HK50)
Last : 25,457
Price tested its previous low support zone on 20 Aug. It could be forming a potential Double Bottom chart pattern. There is also divergence warning given from the MACD that hints of a possible low. Price has to surpass 20EMA at 25,875 for more upside. Stochastic is rising now. MACD is still bearish.
Buy 25,080 with a stop below 24,600 for 26,000.
Nasdaq 100 Index
(CFD Symbol: USTEC)
Last : 15,437
Target price :
This index has been moving within a rising channel since Sep 2020. It broke out from a Triangle pattern on 23 Aug. We are likely to see more upsides towards 15,570 if it can maintain above the breakout point. Stochastic is moving higher. MACD is still bullish and there is a bullish crossover
Buy 15,250 for 15,700 with a stop below 14,998.
S&P 500 Index
(CFD Symbol: US500)
Price rebounded after being supported by the rising 20EMA at 4453. We are likely to see price testing 4560, which is the upper boundary of the rising channel. Stochastic is at the overbought region. MACD is still bullish.
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