S&P 500 Index Rises On Dovish Fed, Nikkei 225 And ASX 200 Open Mixed

S&P 500 Index Rises on Dovish Fed, Nikkei 225 and ASX 200 Open Mixed

Source: Google

Asia-Pacific markets are positioned to open mixed. Futures in Hong Kong, Australia and Singapore are slightly higher. Those in Japan, South Korea, Taiwan, Malaysia and Thailand are in the red however. Australian trade balance and the RBA interest rate decision will be on top of today’s agenda. Canadian and US trade data will be focused tonight. 

Japan’s Nikkei 225 index continued to consolidate beneath the 30,000 mark as the country is in a third state of emergency amid viral resurgence. Meanwhile, a global shortage of semiconductors also put constrains on its manufacturing sector, especially in the auto industry.

Looking back to Monday’s close, 6 out of 11 S&P 500 sectors ended higher, with 65.9% of the index’s constituents closing in the green. Energy (+2.91%), materials (+1.53%) and healthcare (+1.17%) were among the best performers, whereas consumer discretionary (-0.66%) and real estate (-0.48%) trailed behind.

S&P 500 Sector Performance 03-05-2021

S&P 500 Index Rises on Dovish Fed, Nikkei 225 and ASX 200 Open Mixed

Source: Bloomberg, DailyFX


S&P 500 Index Technical Analysis

The S&P 500 index extended higher after rebounding from the 161.8% Fibonacci extension level (4,125). The width of the Bollinger Band is narrowing however, pointing to weak upward momentum. An immediate resistance level can be found at 4,214 – the upper Bollinger Band. Breaking above it may expose the key resistance level of 4,268 – the 200% Fibonacci extension. The MACD indicator formed a bearish crossover and trended lower, suggesting that upward momentum may be fading.

S&P 500 Index – Daily Chart

S&P 500 Index Rises on Dovish Fed, Nikkei 225 and ASX 200 Open Mixed

Nikkei 225 Index Technical Analysis:

The Nikkei 225 index entered a consolidative phase after it failed to breach the 30,214 resistance (the 127.2% Fibonacci extension) for a third attempt. Immediate support levels can be found at 28,357 (100% Fibonacci extension). The MACD indicator is trending lower, suggesting that further consolidation is likely.

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