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Sunday, June 28, 2020

Index Weekly Wrap for the Week of Jun 26

Summary of content for the week of  Jun 26:

1. Week 26 major indexes performance;
2. Week 26 US sector indexes performance;
3. Major indexes weekly charts of support and resistance levels;

U.S
Stocks gave back the previous week's gains, as worries about the 2nd wave of infection offset the news over some positive economic data. 
Technically, it's not the time to turn fully bearish now yet. SPX formed a lower high but no lower low yet, and it's still trading above 50dma and 3000 level. DJI appears weaker but also no lower high yet and above its 50dma as well. The strongest index among all three Nasdaq index just closed below its 20dma by profit-taking after hitting new high this week, away above its 50dma. Early sign to turn bearish would be SPX drops below 2965.66 recent low and its 50dma level 2980.
Bank stocks were particularly volatile. On Thursday, financials rallied on news that Fed was easing restrictions put in place following the financial crisis of 2008. Financials fell back sharply on Friday, however, on previous evening's news the Fed was planning to restrict bank's ability to pay out shareholders through dividends and share repurchases. 
All 11 SPX sectors closed in red, Technology(XLK) less affected with 0.68% down. Financials(XLF) and Energy(XLE) dropped the most with 5.8% and 7.7% down respectively. Refer to below sector index weekly performance table.
China/HK
China and HK had a shortened trading week due to public holidays. SSE index closed 2nd week up in a row, approaching its major downtrend line resistance and 3000 mark now. HSI largely trading within its 4-week trading range. 
Singapore
STI had its 3rd week down consecutively but the selling appears much under control, it looks a healthy retracement to me after its strong rally 3-wk ago. Major support level to watch 2600 and 2500.  







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