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Sunday, December 16, 2018

Index Weekly Wrap for the Week of Dec 14

Summary of Content for the Week of Dec 14:

1. Week 50 major index performance;
2. Week 50 SPY sector index performance;
3. Major index weekly charts of Support and Resistance levels.


US stocks plunged on Friday, ended the week all in red, DJI and SPX closed 2.5% and 2.76% underwater YTD, and the tech dominant Nasdaq gave up almost all its gain this year, closed just 0.11% gain YTD, all by this week. 

SPX closed just above its weekly low 2583.23, which was the lowest level since May 2018. SPX closed just marginally below 2600 level at 2599.95. Two important points worth to note: the American Association of Individual Investors(AAII) Investor Sentiment Survey figures and upcoming Fed rate announcement on Wednesday( Thursday 3am Singapore time). "Pessimism spiked to its highest level since Apr 2013"- seen from AAII statement below, the numbers should be read as a contrarian signal-- market often bounce off to the opposite direction when it hit one extreme. As for now, do expect a rebound in the coming week, in other words, we may still get Christmas rally this year- don't give up so early yet. However, if markets to continue drop in coming week(s), the next TP for SPX at 2400 level. 

As for the US major sectors, Financial(XLF) plunged the most with 3.46% loss this week, and the defensive sector Utilities(XLU) was the most gainer with 0.64% up. 

In Asia, HSI was the best performer and the only index closed positive this week, it closed just above its long-term 50% Fibonacci level 25880 level, as seen from below weekly charts. Singapore STI closed just below 50% fib 3085 level, immediate support to watch is 3050, see if it can rebound in coming week. Shanghai SSE has been in almost two-months bottom consolidation.











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