Expecting Post-Vaccine Rebound

 Summary of content for the week of  Nov 27:

1. Week 48 major indexes performance;

2. Week 48 US sector indexes performance;

3.Major indexes weekly charts of support and resistance levels;

U.S

U.S major indexes closed higher in the holiday-shortened week. Most of the indexes hit record highs, with the DJI gaining the most attention by crossing the 30,000 threshold for the first time. 

The ascent to 30,000 was boosting by encouraging vaccine news amid rising cases and renewed shutdowns in certain regions in EU, Asia and the U.S, stock markets gains are reflecting expectations for a post-vaccine rebound next year and beyond.

Major vaccine and political events appeared supportive: 

1. The third announcement on the vaccine was from AstraZeneca(ANZ.O) in the partnership Oxford University that its vaccine  was up to 90% effective;

2. Joe Biden was preparing to nominate former Fed Chair Janet Yellen as Treasury Secretary. Yellen's appointment is welcomed by investors noted her dovish tenure while at the Fed.

3. General Services Administration(GSA) was formally beginning transition measures in preparing for a Biden administration. Trump tweeted that he was authorizing GSA's action "in the best interest of our country".

But Economic data appeared a negative sign. Initial jobless claims rose unexpectedly to their highest level in five weeks, while personal income fell in Oct. 

SPX 11 sector indexes performance. Reopening hopes boosted cyclical stocks, particularly Energy(XLE) and Financials(XLF), airlines and travel and leisure-related stocks also rebounded, while Health care(XLV), Utilities(XLU) and Real Estate(XLRE) lagged. Refer to the below table for SPX sector indexes ETF weekly performance. 

China/HK

Chinese stocks rose for the week as solid economic data outweighed concerns about rising defaults among domestic bond issuers. SSE index rose for 2nd week to near five-week highs, technically bullish bias. HSI index rose for 4th week in a row to just underneath 27,000 level. 

Singapore

Singapore STI rose 4th week in a row to a new high of 2920 since Mar 6, 2020 and off by profit-taking, as there is a gap resistance level at 2959-2892 area. The index appeared to be technically overbought, do expect profit-taking or sideway consolidation in coming week(s).