Index Weekly Wrap for the Week of May 24

Summary of content for the week of May 24:

1. Week 21 major indexes performance;
2. Week 21 US sector indexes performance;
3. Major indexes weekly charts of support and resistance levels.

U.S

U.S stocks finished the week lower on concerns that U.S-China trade war just will be prolonged, and U.S economic data reports suggested growth is showing signs of slowing. It's interesting to note that the three major U.S indexes are much divided in their weekly performance, with the narrowly focused DJI dropped the least among the major indexes I monitored in below table for less than 1% but the technology heavy-weighted Nasdaq index dropped the most for more than 2%, as investors worried about the impact of rising U.S-China trade war on global supply chains. 

U.S bond yield inverted. The disappointing data and the continued search for perceived safe-heaven assets due to trade war pushed the benchmark 10-yr treasury note yield to its lowest since late 2017.(Bond prices and yields move in opposite directions). Now that 10-yr yield below 3-month yield- a yield curve inversion that has typically preceded an economic downturn, some time about 15months in advance. 

SPX immediate technical support level to watch in coming week is 2800 then 2750. SPX is in its 3rd week down in a row. U.S markets will close for a public holiday on Monday.

Among 11 S&P 500 major sectors, Energy(XLE) performed worst, as crude oil suffered their sharpest weekly loss of the year, the Technology(XLK) also lagging. The typically defensive Utilities(XLU) and Health Care(XLV) are outperformed. 

China/HK
Shanghai index recorded its loss in a row for 5th week, as the intensifying U.S-China trade war spilled into the technology sector, after Trump placed telecom leader Huawei on a blacklist, also there are few other companies including Hikvision , the biggest surveillance camera maker will be included. SSE technical support at 2800-2840 gap support area.

HSI is in its 3rd week decline in a row, has given back 50% of its gain this year, immediate support to watch is 27000 level.

Singapore
STI closed at its major support level 3500 which this level has been tested few times in Jan, Mar and now in May again. The index declined for 3-week in a row, given up 60% of its gain this year already.