Index Weekly Wrap for the Week of Jul 3

Summary of content for the week of  Jul 3:

1. Week 27 major indexes performance;
2. Week 27 US sector indexes performance;
3. Major indexes weekly charts of support and resistance levels;
4. Major indexes monthly performance for June.

U.S

U.S stocks finished the week higher in the shortened Jul 4th holiday week. This week also marked the end of the second quarter. DJI index having its best quarter on record since 1987, closing up 17.8%. The overall stock market performance as measured by the SPX declined 4% for the first six months of the year, it contained a 35% decline from Feb's record high and a 44% rally from march's low. Refer to major index monthly performance table below.

Solid economic data, particularly about the labour market, offset coronavirus second wave fears. Pending homes sales also seemed to support sentiment. The technology-heavy Nasdaq index(COMP) hit a record new high. Technically, SPX has been trading in a back and forth sideways consolidation manner with no clear direction. Refer to the major index weekly performance and weekly charts below.

Within SPX 11 major sectors, the small real estate(XLRE) and Communication Services(XLC) particularly strong. Financials(XLF) and Energy(XLE) shares lagged. Refer to the below sector index performance table below.

China/HK

China's CSI 300 index hits two and half year high as recovery unfolds, the more broad market measure Shanghai Composite Index(SSE) hit more than one year new high since Apr 2019. Sentiment brightened as Caixin/Markit  MPI rose to a six-month high of 51.2, and China's official PMI rose to 50.9-4th straight month above 50. Technically SSE breaks out its big triangle pattern drawn from 2018 high(refer to below SSE weekly chart) which is a bullish signal. 

HSI index also rose to close at high since Mar 9 week, despite of news headlines worries of capital outflow after China introduced a national security law for HK taken effective on Jul 1. Technically, HSI is poised to test 26,000 level in coming week.

Singapore

STI formed a bullish reversal candlestick on its weekly chart which is bullish, this came after three-week down in a row. Expected to continue rebound with immediate technical support at 2600.