Earnings Season in Full Swing and Biden's Capital Gains Tax Hike

 Summary of content for the week of  Apr 23:

1. Week 16 major indexes performance;

2. Week 16 US sector indexes performance;

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

U.S

U.S stocks closed little change with the week ended Apr 23. All three major indexes closed with moderate losses after four-week up streak.

Headlines on possible capital gains tax hike briefly rattle stocks. The proposal would hike the rate to 39.6% from the current 20% rate for those earning more than $1 million per year. Stocks recovered some of their intraday losses as investors seemed to realize that negotiations in Congress would likely make any final tax increase lower than what Biden initially proposes.

Meanwhile, earnings season continued to roll on and figures remained mostly positive. Coming week, market will be focusing on the earning reports for heavy weighted tech FAAMG+T stocks i.e. FB, AAPL, AMZN, MSFT, GOOGL and TSLA, TSLA will be the first to report on Monday.

For the week, among SPX 11 sectors indexes, small Real Estate(XLRE) outperformed and Energy(XLE) and Consumer Discretionary(XLY) lagged. Refer to below SPX sector indexes weekly performance table.

Technically, the three major indexes weekly charts remain in strong uptrend. Refer to below major indexes weekly charts.

China/HK

China SSE index outperformed for the week, with 1.39% gain. Chinese stocks rose steadily since Monday, when mainland equity markets received inflows totaling USD 2.5 billion from Hong Kong via Stock Connect, marking the third-largest single-day inflow from Hong Kong investors. Technically, both SSE and .HSI indexes appear bullish and expected for further rebound.

Singapore

STI index has been in sideway consolidation for last three weeks after six-week up streak. Technical bullish bias with next target level at around 3300 level.