- U.S. stocks gained on Tuesday, with the Dow and S&P notching their fourth straight session of gains, on optimism some progress was being made toward a deal to resolve the conflict between Russia and Ukraine.
- Ukraine proposed adopting a neutral status in a sign of progress at face-to-face negotiations while reports of attacks continued, and Ukraine reacted with skepticism to Russia’s promise in negotiations to scale down military operations around Kyiv on Tuesday.
- U.S. 2-year/10-year Treasury inverted for the first time since September 2019, causing market nervousness that the Fed could make a policy mistake that leads to a slowdown, or possibly a recession.
- Asia shares were mixed on Wednesday morning as hopes rose for a negotiated end to the Ukraine conflict, while bond markets signaled concern overnight that aggressive rate hikes could damage the U.S. economy after 10-year yields briefly dipped below two year rates. Hang Seng index rose 237 points while Nikkei 225 index fell 358 points.
- The Bank of Japan increased its efforts to defend its key yield cap on Wednesday offering to ramp up buying of government bonds across the curve including through unscheduled emergency market operations.
Dow Jones Index
(CFD Symbol: US30)
This index continued to move higher after breaking out from the rectangle consolidation range. The next resistance lies at 35,860. 20EMA is rising, suggesting the uptrend. MACD has turned bullish but Stochastic is at the overbought region
Buy 34,875 for 35,850 with a stop below 34,300.
Hang Seng Index
(CFD Symbol: HK50)
Price is consolidating within a Triangle pattern, with the upper edge coinciding with the gap resistance. 20EMA is flat, but has turned green, hinting at a potential breakout ahead. Both MACD and Stochastic are bullish. We are likely to see price breaking out from the Triangle to move higher.
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Price has formed a base low at 12,945 as it has tested this support zone on three occasions. It moved above the 20EMA and is going to test 15,540 resistance point. Stochastic and MACD are bullish currently.
Wait for better trading idea.
S&P 500 Index
(CFD Symbol: US500)
Recommendation: Long @ 4460
Target price:4590 Filled
Price has formed a base low at 4106 as it has tested this support zone on three occasions. It broke above the support-turned-resistance level with a bullish candle. Both Stochastic and MACD are bullish. If price can maintain above 4580, we could see further upside towards 4748.
Buy 4460 with a stop below 4370 for 4590. Entry order was filled on 23 Mar. Raise stop to 4450 on 25 Mar. Profit order was filled on 29 Mar.