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Monday, August 12, 2019

Index Weekly Wrap for the Week of Aug 9

Summary of content for the week of Aug 9:

1. Week 32 major indexes performance;
2. Week 32 US sector indexes performance;
3. Major indexes weekly charts of support and resistance levels;

U.S
U.S stocks finished the week modestly lower after a week of elevated volatility. The major indexes hit their worst day of the year on Monday, while the fear index VIX spiked up to a high of 24.81, -its highest since Jan 3 this year. Stocks recovered their losses in subsequent trading days but remained volatile. The VIX closed at 17.97 at its 2-month high. As global market reacted to an unexpected drop in China's currency to below key psychological level 7 against the dollar, which was viewed as in response to U.S new tariff schedule to take effect in Sep. 

U.S 10-year bond dropped to 1.745 new low in three years. As risk-off sentiment increases. Having said that, the U.S stocks still looking in good shape, given its strong economy, accommodate with Fed's low-interest rate. U.S stocks do not look like crashing anytime soon. 

Among the major 11 SPX sectors, Energy(XLE) was the worst performer attributed to a surprise rise in U.S inventories. The fall in long-time interest rate favoring real estate stocks, Real Estate(XLRE) was the top performer in the week. 

China/HK
China stocks seem to bear the high impact on the escalation of U.S-China trade war, Shanghai SSE index had breakdown its Jun technical support and hit a new low since Feb this year. HK stocks had a sharp loss this week, nearly given up as HK's street unrest putting more direct impact on its economy as its latest data shows. HK is in the risk of a technical recession, the situation is worse than SARS and 2008 financial crisis impact. 

Singapore
STI was hit hard for 2nd week with 2.83% or 92.17pts loss. It fell to its bottom uptrend line as shown in below weekly chart. Downside support at 3167 then 3100 level. 











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