1. Week 34 major indexes performance;
2. Week 34 US sector indexes performance;
3. Major indexes weekly charts of support and resistance levels;
U.S
U.S stocks suffered 4th straight weekly loss as U.S-China trade war escalation overshadowed U.S retail sales data and Fed dovish stance on rate cut next month. China unveiled a new round of retaliatory tariffs on $75 billion U.S goods and Trump quickly responded with strong-worded. U.S stocks plunged and wiped off prior 4-sessions healthy gain. Dow ended with 623 pts or 2.37% down on Friday.
Expect volatility in stocks will rise as it seems long-way to end the trade-war, but U.S economy especially the consumer spending(69% of GDP in 2018) data still strong and Net Exports only account a small fraction in GDP. U.S stocks still have reasons for upside move despite the 10-year treasury yield curve inverted again on Friday. Short term knee-jerk reaction to trade wars will persist.
Among the 11 SPX major sectors, only two sectors i.e Consumer Discretionary(XLY) and Utilities(XLU) closed with weekly gain, Materials(XLB) was the worst performer with 2.95% loss.
China/HK
China's $75 billion tariffs on U.S goods announced after Asian markets closed. Shanghai SSE index recorded 2nd wk rebound as the People's Bank of China(PBOC) announced changes to the loan prime rate(LPR), perceived as hopes for fresh stimulus measures.
HSI recorded 1st-week rebound after four-week down in a row. The key technical support at 24900 level, which hit twice in Jan and Aug.
Singapore
STI edged up a little and recorded the first-week rebound after 4-week down also. Expected fresh downside selling pressure in the coming week(s). Immediate technical support level to watch is 3100 then 3000 level.
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