- Wall Street ended sharply higher on Thursday in a broad-based rally led by Big Tech, as a truce in the debt-ceiling standoff in the U.S. Congress relieved concerns of a possible government debt default this month. Apple and Amazon are the biggest contributors to the S&P 500 and Nasdaq.
- Uncertainty over the debt-ceiling negotiations was one concern investors cited in September as the S&P 500 logged its biggest monthly percentage drop since the onset of the coronavirus pandemic in March 2020.
- Investors are also keeping an eye on U.S. employment data for September due later on Friday. They expect employment figures that are near consensus will lead Fed to indicate at its November meeting when it will begin tapering its massive stimulus program.
- Asian shares rose on Friday morning as Chinese shares returned from a one week holiday upbeat, tracking a global rally, while investors also eyed key U.S. jobs data for any fresh insight into the timing of Fed tapering. Hang Seng index rose 62 points and Nikkei 225 index gained 597 points.
- The focus remains on the property market as investors wait to see whether regulators take action to contain the contagion from cash-strapped China Evergrande Group’s debt problems.
Dow Jones Index
(CFD Symbol: US30)
Recommendation : Long @ 34,010
Last : 34,806
Target price: 34,700 Filled
Protective stop: 33,750
This index rebounded after hitting the previous low support zone for the third occasion. It moved above the 20EMA resistance and is trading near to its previous high of 35,064. A further penetration of this high will bring price higher towards 35,628. Stochastic is rising and there is a bullish MACD crossover.
Buy 34,010 for 34,700 with a stop below 33,750. Entry order was filled on 5 Oct. Profit target was reached on 7 Oct.
Hang Seng Index
(CFD Symbol: HK50)
Last : 24,644
Price rebounded after consolidating at the support zone for the past few weeks. It is now testing its overhead 20EMA resistance at 24,700, which is also the support-turned-resistance level. Price has to stay firm above this level for more upside. Stochastic is rising but MACD remains bearish.
Wait for better trading ideas.
Nasdaq 100 Index
(CFD Symbol: USTEC)
Last : 14,903
Target price :
This index has been moving within a rising channel since Sep 2020. Price rebounded after being supported by the trendline support, which is also near to the channel support. The 20EMA is capping price’s rally at 14,990. It has to surpass the 20EMA for more upside. Stochastic is rising but MACD is still bearish.
Sell 14,990 for 14,300 with a stop above 15,200.
S&P 500 Index
(CFD Symbol: US500)
Price is testing the 20EMA resistance at 4396 after the rebound. It is also trading near to the overhead downtrend line resistance. Price has to penetrate above this trendline for more upside. Stochastic is rising and there is a bullish MACD crossover after the divergence warning.
Wait for better trading idea