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.