CFD Indices – Wall Street Re-gained Lost Ground From Friday’s Sharp Losses.

Market News

  • Wall Street stocks closed higher on Monday, regaining some of the ground they lost in Friday’s sell-off, as investors were hopeful that the Omicron coronavirus variant would not lead to lockdowns after reassurance from U.S. President Joe Biden.
  • The Nasdaq led gains among the major averages with help from the technology sector, gaining 291 points. The S&P 500 index gained 60 points while the Dow advanced 236 points after suffering their biggest one-day percentage declines in months in Friday’s holiday-shortened session.
  • Biden said on Monday that Omicron-related lockdowns were off the table for now and he urged Americans not to panic about the new variant. Biden recommends vaccination and masks wearing to combat the virus and said the United States was working with pharmaceutical companies to make contingency plans if new vaccines were needed.

Market Views

  • Asian share markets were mixed on Tuesday as investors became cautiously optimistic the new Omicron variant might not cause a widespread global economic disruption to worsen the coronavirus pandemic. The Hang Seng Index lost 260 points while the Nikkei 225 index gained 141 points.              
  • Activity in China’s services sector grew at a slightly slower pace in November, official data showed on Tuesday, as the sector took a hit from fresh lockdown measures as authorities raced to contain the latest outbreak.

Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation : Long @ 35,450
Last : 35,179
Target price: 36,000
Protective stop: 35,200 Triggered

This index has dropped below the 20EMA, turning the trend bearish. This index has to move above 35,500 to re-gain its bullish impetus. Stochastic is in the oversold zone and hinting at a limited downside. 20EMA is bearish. MACD has turned bearish and is hinting at a bearish price trend.

Trading Idea
Buy 35,450 for 36,000 with a stop below 35,200. Entry price and stop order were triggered on 26 Nov.

Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation : Long @ 24,550
Last : 23,596
Target price: 25,100
Protective stop: 24,100 Triggered

This index has continued to move lower after hitting the high at 25,819. This index is currently test the previous low. A break of this support is likely to lead the index lower to 22,500. 20EMA is hinting at a bearish price trend. Stochastic continues to decline. MACD has turned bearish and is hinting at a bearish price trend.

Trading Idea
Buy 24,550 with a stop below 24,100 for 25,100. Entry and stop were triggered on 26 Nov.

Nasdaq 100 Index
(CFD Symbol: USTEC)
Trend :
Recommendation :
Last : 16,393
Target price :
Protective stop:

This index was supported by the 20EMA at 16,150, hinting that the decline was just a correction and not a new bear trend. Stochastic is declining after a bearish crossover.  MACD remains bullish but there could be a divergence forming. 20EMA is bullish and hinting at t a bullish price trend.

Trading Idea
Buy 16,170 for 16,750 with a stop below 15,950.

S&P 500 Index
(CFD Symbol: US500)
Recommendation: Long @ 4620
Last: 4651
Target price: 4740
Protective stop: 4550

This index has been declining after creating a new all-time high at 4744. We believe this decline is a correction and not a new bearish trend as long as this index stays above 4550. The 20EMA remains bullish. Stochastic is declining after a bearish crossover in the overbought region.  MACD remains bullish but has given a divergence.

Trading Idea
Buy 4620 for 4740 with a stop below 4550. Entry order was filled on 26 Nov.

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