Biden’s Infrastructure Bill Passed, Stocks Edged Higher

 Summary of content for the week of Aug 13:

1. Week 32 major indexes performance;

2. Week 32 US sector indexes performance;

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

U.S

For the week of Aug 13, U.S stocks finished another relatively quiet session higher, just close to flatline after August’s consumer sentiment unexpected fell to the lowest level since 2011, a reading at 70.2, largely fell short of the forecast 81.2. The drop in sentiment came amid dampened confidence across all aspects of the economy, as the resurgence of COVID-19 new Delta variant as a primary culprit. Cyclical/value stocks, outperformer technology/growth stocks, while DJI(weekly chart) and SPX(weekly chart) closed positive and Nasdaq(weekly chart) squeezed out gains. Refer to major indexes weekly performance table below.

Major events happened in the week:

* Senate Passes $1 trillion bipartisan infrastructure bill Tuesday. Senate Democrats also approved a $3.5 trillion budget resolution without Republican’s votes. 

2.    *Jul CPI increased by 0.5%, decelerate from the 0.9% in June. This slowdown in the inflation rate appeared to align with Fed’s narrative that increases in consumer prices should prove transitory.

***Michigan Consumer Sentiment for Aug fell unexpected to 70.2, the forecast is 81.2.

Within SPX sectors, Materials (XLB) and Comsumer Staplers (XLP) outperformed while Energy(XLE) lagged. Refer to SPX sector indexes weekly performance below.

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

China/HK

Mainland China stocks recorded modest gains despite worries that increased government oversight of the country’s technology and private education industries would spread to other sectors. SSE index (weekly chart) gained 1.7%, refer to the above major indexes weekly performance table.

China maintains “zero tolerance” coronavirus policy. Beijing has adhered to a "zero tolerance" policy of mass testing, tracing, and lockdowns in response to the delta coronavirus strain.

Technically, both SSE and.HSI index(weekly chart) bounced for 2^nd week in a row. SSE index largely in sideway consolidation in its Feb-Mar 21 range, and.HSI index appears stablising after the Jul slump.

Singapore

STI index(weekly chart) appears very resilient and consolidated in a tight range over past two months. Immediate resistance at 3194 recent high and major support at 3104 recent low. With bullish bias.