S&P 500, NIKKEI 225, HANG SENG INDEX OUTLOOK:S&P 500 index climbed to key 3,180-3,200 resistance zone, Nasdaq hit all-tim
S&P 500, NIKKEI 225, HANG SENG INDEX OUTLOOK:
- S&P 500 index climbed to key 3,180-3,200 resistance zone, Nasdaq hit all-time excessive
- Nikkei 225 index makes an attempt to interrupt 22,700 resistance after Monday’s rally
- Dangle Seng Index is gaining upward momentum as mainland China shares soar
S&P 500 Index Outlook:
The S&P 500 index climbed to three,184 on Tuesday morning, approaching a key resistance degree which it failed to interrupt above in early June. Buyers are cheering an enormous rally in China and Hong Kong, and US-listed China know-how corporations. Alibaba (+7.33%) and Baidu (+7.81%) outperformed. Tesla’s whopping 13.48% acquire led the Nasdaq Composite to hits an all-time excessive of 10,433.
Buyers are additionally shrugging off the virus state of affairs because the Covid-19 case progress fee within the Solar Belt states – Florida, Arizona and Texas – fell under its seven-day common.
The subsequent massive factor is the Q2 US incomes season, by which market contributors predict an unsightly image. Throughout the second quarter, analysts have lowered earnings estimates for S&P 500 corporations. On a per share foundation, the bottom-up estimated earnings for the second quarter decreased by 37%(chart under), in accordance with Factset. The ahead 12-month P/E ratio for the S&P 500 is 21.8 – increased than the 5-year common of 16.9 and 10-year common of 15.2.
That stated, the worth of US equities appears to have diverged farther from financial fundamentals, rendering them susceptible to a pullback ought to earnings ship an enormous miss. Nonetheless, Company America tends to set comparatively conservative earnings steerage, such that the estimates might be beat extra simply. Fasten your seat belt, as practically 70% of the S&P 500 parts will ship their outcomes by the top of July.
Sector-wise, client discretionary (+3.21%), communication (+2.15%), financials (+1.95%) and data know-how (+1.8%) have been among the many greatest performers (chart under).
Supply: Factset
Supply: his.com.hk, DailyFX
S&P 500 Index –Technical Evaluation
The index is re-challenging a resistance zone at 3,180 – 3,200, which it failed to interrupt in early June and has subsequently entered into consolidation. The index is using an uptrend which is highlighted by the ascending channel under. General momentum stays bullish within the close to time period. A agency break above 3,200 will possible open room for extra upside in direction of 3,360 – the 200% Fibonacci extension.
S&P 500 Index – Every day Chart
Nikkei 225 IndexOutlook:
Technically, the Nikkei 225 index is consolidating at round 22,000 – 22,700 for 3 weeks (chart under), missing catalysts to interrupt the oblong field in both course. The general development stays bullish nevertheless, because the 50-day Easy Transferring Common (SMA) has crossed above the 100-day SMA, forming a ‘golden cross’ on the day by day chart. Will Nikkei comply with Wall Avenue and Larger China markets increased? The subsequent few days will most likely give us the reply.
Nikkei 225 Index – Every day Chart
Dangle Seng Index:
Hong Kong’s Dangle Seng Index inventory market benchmark has firmly damaged an ‘Ascending Triangle’ and soared to a three-month excessive at 26,339 yesterday. Futures markets are pointing to a optimistic begin at this time, with sentiment boosted by a powerful US buying and selling session final evening. Financials and actual property have been among the many best-performing sectors on Monday.
Mainland China shares are gaining momentum, and the FTSE China A50 index soared to a 12-year excessive with surging buying and selling quantity. The state-owned media is cheerleading a bull market, which is perceived to assist cushion an financial slowdown and revitalize client spending.
Technically, the Dangle Seng Index is using a bull development with quick resistance degree discovered at 27,250 – the 76.4% Fibonacci retracement degree.
Dangle Seng Index – Every day Chart
Really useful by Margaret Yang
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— Written by Margaret Yang, Strategist for DailyFX.com
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