Index Weekly Wrap for the Week of May 22

Summary of content for the week of  May 22:

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 three major indexes finished the week with new highs since Mar low, on optimism over the reopening of the economies and hopes of getting vaccines. Though later in the week some caution returned as U.S-China tension raised further, China planned to impose a new security law in Hong Kong, and as U.S introduced a new law could force Chinese firms to delist from the U.S exchanges.

The "fear index" VIX has since dropped to around 28 from high of over 80 in March when panic selling occurred, this is an indication investors turned to more bullish and risk-on mode. U.S markets will be closed for a public holiday on Monday.

Among the 11 major SPX sectors, Industrials(XLI) and Energy(XLE) outperformed while Healthcare(XLV) lagged this week, refer to below sectors weekly performance table.

China/HK

Further deterioration in U.S-China relations as U.S introduced a new bill that required Chinese companies to prove that they are not owned or controlled by a foreign government. HK exchange would be a beneficiary as more Chinese ADRs would likely seek a Hk listing instead.  HSI index sold off hard on Friday as China announced plans to impose national security law on HK. The HSI index broke down its 7-week sideway consolidation support level, technical is bearish with immediate downside support at 21500-which is Mar low. SSE index also dropped but largely remain within its 4-week trading range. 

Singapore

Singapore STI index broke down and just inches closed below 2500 technically support, next level of support would be 2400 if it continued to drop. Singapore will be closed for a public holiday on Monday and will resume trading on Tuesday.