Index Weekly Wrap for the Week of May 8

Summary of content for the week of  May 8:

1. Week 19 major indexes performance;
2. Week 19 US sector indexes performance;
3. Major indexes weekly charts of support and resistance levels;


U.S
U.S stocks finished decisively higher this week. All three major indexes posting weekly gains, and the technology dominant Nasdaq index outperformed and moves into positive territory for the year- with 1.66% YTD. Technically Nasdaq have had a V shape rebound and within roughly 7% of its all-time high in Feb. The SPX index also recouped 61.8% of its loss from Feb high to Mar low.

Stocks recover obviously much faster than the economy itself as economic data reflects prior and/or current conditions while stock is forward-looking. Markets are now reflecting a more positive outlook towards economic restart and rising corporate profit later this year and through 2021. It does not mean market will go higher all the way from here and short term pull-back possible given that negative news not fully baked in and still bad economic data. Short term pullbacks could provide buying opportunities for long-term investment.

Going forward, companies in different sectors will experience different recovery stories. Travel, hospitality and leisure activities will have more virus impact, and healthcare and technology, online consumer spending will see higher growth. 

Within SPY 11 major sectors as shown in below weekly sector performer table, Energy(XLE) and Tech(XLK) are very strong. Utilities(XLU) and Consumer Staples(XLP) shares lagged.

China/HK
China SSE index resumed their gradual uptrend in the holiday-shortened week. China's coronavirus risks continue to fade rapidly. National People's Congress(NPC) is confirmed to open on May 21 in Beijing with over 5000 delegates attending in person. 

HSI index dropped 1.68% for the week but still within its 5-week consolidation range.

Singapore
STI has been consolidating within its 4-week price range above its previous 10-year low 2522 level which is also a key technical support level, as long it can hold around 2522-2500 level. Market should gather more upside potential when coronavirus situation improves.