- The S&P 500 ended slightly down on Thursday, paring losses in late trading after unexpectedly strong retail sales data underscored the strength of the U.S. economic recovery. The three major indexes spent much of the day in negative territory as rising U.S. Treasury yields pressured market-leading tech stocks
- Data released before the opening bell showed an unexpected bump in retail sales as shoppers weathered Hurricane Ida and the COVID Delta variant, evidence of resilience in the consumer, who contributes about 70% to U.S. economic growth.
- The Fed’s policy decision, due to be handed down next week, could be another source of volatility. It remains to be seen whether the decision will provide any clues to the Fed’s timeline to begin asset tapering and hike interest rates.
- Asian shares steadied on Friday morning after losses earlier in the week, but China jitters and global growth concerns weighed on investors’ minds, while the dollar sat near a three-week high. Hang Seng index rose 122 points and Nikkei 225 index gained 181 points.
- Chinese data earlier this week suggested growth in the world’s second-largest economy will slow in the second half of this year, while economists polled by Reuters said they expected the U.S. economic rebound to have been dented in Q3, partly on the spread of the Delta coronavirus variant.
Dow Jones Index
(CFD Symbol: US30)
Last : 34,752
Price is now sitting at previous low support zone of 34,560 after violating the rising trendline. The 20EMA is bearish now and is acting as resistance at 35,000. Stochastic is near to the oversold region and a bullish crossover is likely. These could increase chances of the index rebounding from the support zone. A further violation of this support zone will hint for deeper correction. MACD is bearish now.
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Recommendation : Long @24,800
Last : 24,759
Target price: 25,800
Protective stop: 24,400
Price hit the previous low support zone for the third occasions yesterday. It is now forming a potential Hammer candlestick pattern. We are likely to see price ranging between 24,490 and 26,780. Stochastic is falling and near to the oversold region. MACD is bearish now.
Buy 24,800 with a stop below 24,400 for 25,800. Entry was filled on 17 Sep.
Nasdaq 100 Index
(CFD Symbol: USTEC)
Last : 15,552
Target price :
This index has been moving within a rising channel since Sep 2020. A correction occurred after being resisted by the upper boundary of the channel. Price appears to rebound after hitting the 20EMA support. It is likely to retest the upper boundary of the rising channel at 15,850 again. Stochastic is turning up. MACD is still bullish
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Price is now sitting the lower boundary of the channel support. This could be a good chance for long entry as there is a Bullish Engulfing candlestick pattern formed two nights ago. If price can penetrate above the 20EMA at 4482, we are likely to see price moving higher towards the upper boundary of the channel again. Stochastic is rising and MACD remains bullish.
Buy 4440 with a stop below 4410 for 4510