1. Week 4 major indexes performance;
2. Week 4 US sector indexes performance;
3. Major indexes weekly charts of support and resistance levels;
U.S
U.S dropped on Friday, SPX lost 0.9% - a loss not seen for while. U.S stocks taking a breather for the week following strong performance since beginning of the year. Global market underperformed on fears of the coronavirus outlook in China and spreading to other countries.
What stocks will be affected? Global tourism expected to drop, oil demand will be lesser. Energy shjares lagged. Resorts and Casino related stocks such as Wynn Resorts(WYNN) and Las Vegas Sands(LVS) particularly weak given the decline in visitors to their casinos in Macau. On the other hand, Utilities shares outperformed.
China/HK
Following the sudden outbreak of a new coronovirus in Wuhan this shortened CNY holiday week, Shanghai stocks(SSE) dropped 3.2% sharply below the important psychological 3000 mark and HSI dropped 3.8%, break below 28000 level as well. However, it is believed the short term panic selling will not last long based on the example provided from previous SARS outbreak in 2003. The biggest economic casualties are likely to be retail sales( online sales could benefit), restaurants, and airlines and travel.
The three Asian indexes under my watchlist: SSE, HSI and STI all retreated from their major downtrend line as shown in the weekly charts below. Technical traders would have be alerted on the pullback or even go short already.
Singapore
STI retreated from its major downtrend line as shown in the weekly chart below. Immediate technical level to watch is 3222.83 Year-End-Close(YEC).
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