- S&P 500 jumped on Thursday, its biggest daily percentage advance since early March, as companies including Morgan Stanley and United Health climbed following strong results, while data on the labour market and inflation soothed fears over the outlook for higher rates.
- Shares of Citigroup, Bank of America and Morgan Stanley also gained after they topped quarterly earnings estimates. The rebounding economy allowed them to release more cash they had set aside for pandemic losses, while sizzling deals, equity financing and trading added to profits.
- Adding to optimism, data showed the number of Americans filing new claims for unemployment benefits last week fell close to a 19-month low, and a separate report showed producer prices eased in September.
- Asian shares advanced on Friday morning, following the overnight strong day on Wall Street, though worries about the Chinese economy capped gains. Hang Seng index rose 28 points and Nikkei 225 index gained 318 points.
- On Thursday, China’s September factory-gate inflation rose to a record on soaring commodity prices, but weak demand capped consumer inflation, leaving policymakers to walk a tight rope between supporting the economy and further stoking producer prices.
Dow Jones Index
(CFD Symbol: US30)
Last : 34,986
This index rebounded after hitting the previous low support zone for the third occasion. It is currently testing its previous resistance high at 35,064. Price needs to move above the resistance high for more upside. Stochastic is rising but MACD is still bearish.
Buy 34,700 for 35,300 with a stop below 34,350.
Hang Seng Index
(CFD Symbol: HK50)
Recommendation : Long @ 25,050
Last : 25,126
Target price: 25,900
Protective stop: 24,650
Price rebounded after forming a Double Bottom chart pattern. It has moved above the 20EMA resistance and the support-turned-resistance zone. As long as price stays above 24,750, we are likely to see price testing 26,820. Stochastic is rising and MACD has turned bullish.
Buy 25,050 for 25,900 with a stop below 24,650. Entry price was filled on 12 Oct.
Nasdaq 100 Index
(CFD Symbol: USTEC)
Recommendation : Short @ 14,990
Last : 15,094
Target price : 14,300
Protective stop: 15,200
This index has been moving within a rising channel since Sep 2020. Price rebounded after forming a Bullish Engulfing on 13 Oct. It has moved above the 20EMA and we are likely to see price moving higher from this lower channel support. Stochastic is rising, MACD has turned bullish.
Sell 14,990 for 14,300 with a stop above 15,200. Entry order was filled on 14 Oct.
S&P 500 Index
(CFD Symbol: US500)
Price broke and closed above the declining trendline resistance last night with a bullish candle. It has moved above the 20EMA as well. As long as price stays above the trendline, we are likely to see price moving higher towards its previous high at 4549. Stochastic is rising, MACD has turned bullish.
Buy 4420 for 4520 with a stop below 4360