Biden Signed US$ 1.9 Trillion ARP, Stocks Expected to Go Higher

 Summary of content for the week of  Mar 12:

1. Week 10 major indexes performance;

2. Week 10 US sector indexes performance;

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

U.S

U.S stocks started the week on a down note as the 10-year U.S Treasury note stayed near one-year highs. Bond yield retreated over the following days, which seemed to provide a lift to sentiment. All the three major U.S indexes ended the week higher, DJI and SPX closed out new highs, Nasdaq participated but still way below its recent high. 

Obviously, we can see the out of sync in sectors. DJI which dominated by cyclical sectors such as the Financials are very bullish, and Nasdaq which dominated by Tech stocks are under selling pressure due to high-interest rate and inflation expectations which will have a bigger discount on their futures earnings. There is no crash on stocks but just sector rotation, bulls are expected to charge higher, we see early signs that investors put interest rates behind after a recent retreat and will get attracted to tech stocks again. 

Technically, the three indexes' major uptrend is still well intact, with no breach of their uptrends. (Refer to below major indexes weekly charts). With improving economic data and accommodative both fiscal and monetary policies, we see the bull markets most probably will continue. 

China/HK

China's SSE index posted a 3rd weekly loss as it fell 1.4%. Technically SSE closed at its technical support 3450, major uptrend on its weekly chart still well intact, expected the index to bounce back after the recent retreat. Hang Kong's HSI index was down for 2nd week, indexes had been on recovery mode till turned south abruptly on Friday, while Bloomberg reported the heavyweight tech giant Tencent(700.hk) would be the next target in the list of China's top anti-monopoly measure, after Alibaba(9988.hk). 

Singapore

STI hit my immediate target level of 3100 which set two-week ago. The next major technical resistance at 3300, can pay attention to top local Semicon stocks after the recent retreat, such as AEM, UMS, Frencken, and Venture.