Market News
- Wall Street indices ended higher with three major indexes closing at record highs, gaining early in the day as investors’ cheered passage of a U.S. infrastructure spending bill. Investors boosted materials stocks but sliding Tesla shares pared gains late and pulled the indexes down.
- The congressional passage of a long-delayed U.S. $1 trillion infrastructure bill over the weekend has cheered investors. The bipartisan infrastructure bill aims to improve the nation’s critical infrastructure including transportation, broadband access and utilities.
- Lawmakers now turn to Biden’s social spending bill, with the House of Representatives expected to vote on the measure next week, according to White House economic adviser Brian Deese.
Market Views
- Asian shares followed Wall Street higher on Tuesday as the passage of a U.S. infrastructure bill boosted sentiment while oil prices gained on the outlook for energy demand in an expansive global economy. The Hang Seng Index gained 50 points while the Nikkei 225 put on 39 points.
- Global shares are expected to rise going into the New Year as relatively dovish central banks’ messages added to optimism generated by a healthy earnings season on both sides of the Atlantic.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 36,315
Target price:
Protective stop:
Outlook
Price continues to move higher, setting a new record high overnight. However Stochastic is in the overbought zone. MACD is developing a bearish divergence, warning of a possible price high in the making. 20EMA remains bullish. A price correction can send this index down to the 20EMA line at 35,575 currently.
Trading Idea
Sell 36,400 with a stop above 36,600 for 35,650.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 24,795
Target price:
Protective stop:
Outlook
A bearish Engulfing candlestick price pattern had sent price lower to 24,700 in the previous trading session. If price managed to hold above the previous day’s low, we may see a bounce in this index. Stochastic is likely to have a bullish crossover in the oversold zone soon. MACD remains bullish and is turning around as well.
Trading Idea
Buy 24,750 for 25,350 with a stop below 24,450.
Nasdaq 100 Index
(CFD Symbol: USTEC)
Trend :
Recommendation :
Last : 16,307
Target price :
Protective stop:
Outlook
This index continues to move higher. In fact, this index has been moving within a rising channel since Sep 2020. A possible Shooting Star candlestick is hinting of a possible price high and a reversal. Stochastic is at the overbought region. MACD remains bullish and is hinting of a bullish price trend ahead.
Trading Idea
Wait for better trading idea.
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 4688
Target price:
Protective stop:
Outlook
Price penetrated its previous high resistance zone and has continued to move higher towards a Double Bottom chart pattern’s price target at 4694. Two days ago, price has exceeded the projection target by hitting a high of 4718. There is still no sign of a potential reversal in trend. 20EMA is bullish but Stochastic is at the overbought region. MACD remains bullish.
Trading Idea
Wait for better trading idea.
