Index Weekly Wrap for the Week of Oct 26

US three major indexes have all broken down their major uptrend lines decisively this week(as shown in below weekly charts). Not only that, all three also broke their respective 200dma which widely seen as the territory border for bull and bear. By now, both DJI and SPX have given up their all YTD gain and in losses, tech-heavy weighted Nasdaq index also gave up most of its gain and is the only index still had positive YTD return with 3.82%.

The fear index VIX jumped 21% to 24.16 this week, and it surged up 63% over last three weeks. Indicating investors turning to risk-off assets. Gold bottom rebounded to its three-month high of 1235.4 this week.

In the 11 SPY sectors, only four have YTD positive return i.e Utility, Tech, Consumer Discretionary, and Healthcare. All 11 sectors ended in red this week, with the Real Estate sector with the least loss of 1.07% and Energy sector suffered the most loss with 7.06% down. Refer to below sector weekly performance table.

In Asia, China SSE index was the only index rebounded with 1.9% up, but it's still the worst market with YTD return of -21.44%, HSI and STI lost 17.39% and 12.66% respectively YTD. HSI dropped below 25000 level and STI dropped 3000 level this week, both are important psychological market level.

There is a technical support level of 2950-2880 level for STI index if it continued south.

Index Weekly Wrap for the Week of Oct 19

World stocks stablised a bit after last week bloodshed, except the SSE index continued dropped 2% more. By now, DJI and SPX just hovering around their major uptrend but the technology weighted Nasdaq index had broken below its major uptrend line established since 2016(refer to below weekly charts). US technology stocks appear weaker and leading the way drop. Coming week is important as there are many stocks will report their earnings.

Among SPY main sectors, Consumer Staples(XLP), Real Estate(XLRE) and Utilities(XLU) among top gainer and Consumer Discretionary(XLY) and Energy(XLE) are among the top losers.

In Asia, STI stalled just above 3050 for 2 weeks, next important support level to watch is 3000, HSI just above 25000 level support and SSE rebounded a bit after hitting its 4-yr low this week.

Index Weekly Wrap for the Week of Oct 12

World stocks had a bloodbath week led by the US. DJI index lost more than 1000 points this week which has not seen since Feb/Mar this year when Fed announced 1st rate hike scared investors. The US stocks finally joined the selloff outside US. Notwithstanding the three major index uptrend still well intact, we shall need few weeks if it really something for bears.

For the 11 SPDR sector ETFs, all sectors closed in red this week, with utilities lost least and Materials lost the most. Technology sector still the best performer sector with 10.76% YTD return, after big fall over last two weeks. See sector ETFs performance in below table.

In Asia, the three major indexes that in my watchlist all hit new low, weekly trends are bearish and we do not see any signs of immediate bottom.

STI immediate support will be 3000 then 2960 level. HSI immediate support level to watch is 25000 level and SSE immediate support 2600 then 2500 level. Index weekly performance as follows.

Index Weekly Wrap for the Week of Oct 5

World stocks closed lower this week as US bond yield hitting new high since 2011, the latest economy data shows US economy continue getting stronger. The 10 year treasury is the benchmark used to decide mortgage rates across the U.S. and is the most liquid and widely traded bond in the world. The current 10-yeartreasury yield as of October 04, 2018 is 3.23%.

Both Dow Jones Industrial Average Index(DJI, chart as shown in below) and Dow Jones Transportation Average Index(DJT, not shown here) showing topping reversal signs this week. And the widely followed SPX index closed at its 3-week low, the technology dominant Nasdaq index which has been most bullish dropped 3.2% this week fell to its 9-week low. I think finally we see big money started to selling and adjusting their portfolio in line with the rising bond yield. Notwithstanding the three indexes major uptrend are still well intact, and it should not be read as it will fall down one straight-line.

Among US SPDR sector ETFs, best performer was the energy sector XLE which up by 1.87% this week, and worst performer was  Consumer Discretionary XLY which lost 4.25% this week. The best performer YTD still technology XLK with 15.15% up and worst sector YTD is the Consumer staples XLP lost 6.06%.

In Asia, local benchmark STI index turned to loss this week after 3-week rebound, immediate upside resistance is at 3265 and downside support at 3200 then 3100 level;

Hongkong HIS index was the worst performer with 1215 points or 4.4% loss this week. Immediate upside resistance at 28000 and downside support at 25200 level. Mainland SSE index remain closed this week for public holiday and will resume trading on Monday.