Better Economic Data, Stocks Hit Fresh New Highs

 Summary of content for the week of Jul 2:

1. Week 26 major indexes performance;

2. Week 26 US sector indexes performance;

3. Major indexes monthly performance for June;

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

U.S

U.S major indexes finished higher heading into the long holiday weekend, posting gains for a second-straight time on a weekly basis. The SPX and Nasdaq Composite index moved to new highs and closed out a fifth consecutive quarterly advance, while DJI closed at its two-month high. U.S markets will be closed for a public holiday on Monday. Refer to major indexes weekly and monthly performance table below.

Major events on record for the week:

1.    Generally favorable economic data seemed to support sentiment. On Friday, it reported there are 850k nonfarm jobs added in June, well above consensus estimates of around 700k and the most since last August. Weekly jobless claims also fell more than expected, to a pandemic-era low of 364k. 

Despite robust gains last month, total employment is still 6.8 million short of its pre-pandemic level. With the numbers a long way from the Fed’s goal for full, broad-based and inclusive employment, it’s expected there is no urgency to push the shifting policy timeline forward. 

2.    Health officials stress effectiveness of vaccines against delta variant, despite the U.S. saw an increase in cases concentrated in states with lower vaccination rates, and some new restrictions were put in place in Israel and elsewhere.

Among SPX 11 sectors, Technology(XLK) and Healthcare(XLV) outperformed, while Energy(XLE) lagged. Refer to SPX sector indexes weekly performance below.

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

China/HK

China SSE index fell for the week. SSE index recorded its biggest one-day percentage drop since early March on Friday, Reuters reported. Reports of profit-taking by domestic investment funds and open market operations undertaken by China’s central bank to drain funds from the financial system may have contributed to the declines.

In its latest policy meeting, the People’s Bank of China said that it would “keep the macro leverage ratio basically stable," suggesting that the central bank would not tighten policy in the near term.

Hang Seng Index(.HSI) also reversed its previous gain and dropped to two-month low. Technically, both SSE and .HSI indexes are trapped within their multi-month trading ranges respectively. Pls refer to both indexes weekly charts below.

Singapore

STI index closed flat for the week with little change. Its weekly chart in range bound, immediate resistance at 3194 recent high and major support at 3104 recent low.