U.S Lower 2nd Week

 Summary of content for the week of Sep 17:

1. Week 37 major indexes performance;

2. Week 37 US sector indexes performance;

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

U.S

For the week ended 17 Sep, U.S stocks down for 2^nd week,  continues historical norm for Sep month. The markets continued to grapple with uncertainties regarding the Delta variant, global monetary policy tightening timing, fiscal stimulus, and persistent supply-chain challenges. All three major indexes ended down for the week, with the SPX index dropped the most. Refer to major indexes’ weekly performance table below.

Points to Highlights:

1.    Inflation moderates as Core consumer prices increased 0.1% in Aug, as reported on Tuesday, below expectation. 

2.    Bond yields increase as investors await Fed meeting. Fed meeting will be on coming week 21-22 Sep, many observers expected to announce the first steps in tapering monthly assets purchases designed to hold down long-term interest rates.

Among 11 SPX sectors, Energy(XLE) recorded solid gains on the back of rising oil prices, while strength in auto-related shares boosted consumer discretionary(XLY) stocks. The small materials (XLB) and utilities (XLU) sectors lagged. Refer to SPX sector indexes weekly performance below.

Technically, both DJI and SPX indexes traded below their 50dma level, DJI has been below it since last week, and SPX just closed below it this week, which could lead to more room for the downside. Nasdaq index as strongest among the three is still hovering around its 20dma, still got some room above its 50dma.

DJI weekly chart

SPX weekly chart

Nasdaq weekly chart

China/HK

Chinese stocks fell sharply for the week. The Shanghai Composite Index (SSE weekly chart) was down 2.4%. In Hong Kong, the benchmark Hang Seng Index(.HSI weekly chart) lost 4.9%.

Weak August economic data, a fresh coronavirus outbreak in Fujian province, the growing debt crisis at embattled property developer China Evergrande Group, and the threat of tighter gaming regulations in Macau dampened investor sentiment. Strong trade data and an unexpected yet reportedly candid phone conversation between the U.S. and Chinese presidents lifted investor sentiment. Next week, China’s stock markets are closed Monday and Tuesday for the Mid-Autumn Festival and will reopen on Wednesday, 22 September.

Technically, SSE index retreated after hitting year-high level 3731.69 in Feb, uptrend is still well intact. HSI index dropped to its lowest point of 24424.74 this year in the week. Its YTD return is at -8.5% so far, the weakest among major indexes.  

Singapore

STI index has been trapped within its narrow three weeks trading range, just above its 200dma support level. This week, continues to watch out major support level at its 200dma level 3060 and horizontal support 3050( 3060-3050 support level) in the short run.

STI weekly chart.