Index Weekly Wrap for the Week of Jun 22

Stocks fell worldwide this week, as US-China trade spat intensified. US also increased trade tariffs against its western allies- the EU, NAFTA countries and also Japan and India in Asia. Counter measures are taken to against US from the countries affected. The global trade protectionism seems will not be ending soon before it gets worse off.

As the only super-power country, global assets reported continuous flowing back into US, given stronger dollar. The "fear index" VIX stays below 15(Friday closed at 13.77), which indicates investors have little "fear" if not at all for US stocks going forward.  On the other hand, the China Shanghai index lost its ground, plunged 4.4% this week, make it the worst performer with -12.6% YTD return. The technology heavy index Nasdaq recorded positive 11.4% YTD return as comparison. The Chinese stocks already lost in this trade war spat with US.

Refer to below funds flow data for past 30 days, total Equity funds flow into US amounted $39.45b and flow out of Asia-Pacific and Europe were $1.07b and $3.75b respectively.

Data source: ETFGlobal. https://www.etfg.com/research/fund-flow

Major index performance for the week as in below table, only left two indexes with positive YTD return: Nasdaq(COMP) and SPX, down from previous week of 4. US three major indexes uptrend still intact.

In Asia, STI index dropped to its major uptrend bottom line, broken down its key support 3340 and turns to major resistance level now. Watch for 3340 as resistance if the index rebounded in coming week(s), downside major support level is 3200.

HSI broken down its key support level 30000 mark and also went underwater YTD return.  immediate resistance 30000 level and downside support 28500. China Shanghai index broken its key support level 3000 decisively this week. No signs of rebound, next major support is at 2650 level if it continue go lower. Refer to major indexes weekly charts below.