- Wall Street stocks surged to a higher close on Friday, entering the final quarter of 2021 in a buying mood boosted by positive economic data, progress in the battle against COVID, and Washington developments on the potential passage of an infrastructure bill.
- The rally gained momentum after the White House announced U.S. President Joe Biden was getting more involved in negotiations over the infrastructure spending bill being debated on Capitol Hill.
- A host of economic data released on Friday showed increased consumer spending, accelerated factory activity and elevated inflation growth, which could help nudge the U.S. Federal Reserve toward shortening its timeline for tightening its accommodative monetary policy.
- Asian shares dipped on Monday morning as concerns about China’s property sector and inflation worries offset upbeat U.S. data and positive news on new drugs to fight the coronavirus. Hang Seng index plunged 453 points and Nikkei 225 index slid 273 points.
- Investor sentiment got a lift on Friday after Merck & Co said an experimental oral antiviral treatment could halve the chances of dying or being hospitalized for those most at risk of contracting severe COVID-19.
Dow Jones Index
(CFD Symbol: US30)
Last : 34,250
This index is testing the previous low support zone for the third occasions. The 20EMA is acting as resistance at 34,560. There is divergence warning given from the MACD that hints at possible low. Stochastic did not fall to the oversold region either. We could see price penetrating above the 20EMA to move higher.
Buy 34,010 for 34,700 with a stop below 33,750
Hang Seng Index
(CFD Symbol: HK50)
Last : 24,053
Price is consolidating and trading near to its overhead 20EMA resistance at 24,810, which is also the support-turned-resistance level. Stochastic is still weak and MACD remains bearish. Price could break below its recent low to move lower.
Sell 24,800 with a stop above 25,100 for 24,100
Nasdaq 100 Index
(CFD Symbol: USTEC)
Last : 14,727
Target price :
This index has been moving within a rising channel since Sep 2020. Price is trading near to the trend line support at 14,500, which is also near to the channel support. Stochastic is at the oversold region. MACD is still bearish. We could see a price rebound if price penetrates above 14,830
Buy 14.250 for 14,850 with a stop below 13,950.
S&P 500 Index
(CFD Symbol: US500)
Price rebounded after violating its previous low of 4305 last Friday. The 20EMA is acting as resistance that capped price’s rally at 4408. Stochastic is near to the oversold region. MACD remains bearish but there is divergence warning. We are likely to see price moving higher if it is able to surpass the 20EMA resistance.
Wait for better trading idea.