Index Weekly Wrap for the Week of Dec 7

Summary of Content for the Week of Dec 7:

1. Week 49 major index performance;
2. Week 49 SPY sector index performance;
3. Major index weekly charts of Support and Resistance levels.

US stocks plunged again this week over US bond yield inverting and Huawei CFO arrest in Canada. World financial markets jittered and gave back all gains from the announced 90-day trade war truce after Trump-Xi's G20 meeting, I am surprised the truce so fast becomes short-lived, the much-expected X'mas and year-end rally looks very dim now. 

From the technical perspective, stocks look very bearish and poised for further downside. SPX(ref to weekly chart below) negated previous week gain, tested its major uptrend line back and sold off, the box of consolidation usually has a projection target to the downside to 2400 level, that's about 200 points below close on Friday. DJI index also closed below its major uptrend line for the 2nd time. Nasdaq gave back almost all its YTD gain, the rest of indexes YTD return are underwater now.

Among 11 SPY sectors, Utilities(XLU) and Real Estate(XLRE) are two best sectors with positive weekly gain. Financial(XLF) is the weakest sectors and were led down by the banks.
That's because falling bonds yields are usually bad for financials. Dividend-paying utilities usually benefit from falling bond yields. So do consumer staples, drug stocks, and REITs which are holding up relatively well. Groups being hit the hardest are economically-sensitive consumer cyclicals(like retailers), small caps, semiconductors, and transports( like delivery service stocks). That's another vote of no confidence in economic growth.

In Asia, STI tested 3195 resistance level and was sell-off, immediate pivot level is 3085 which is the 50% Fibonacci level from 2016-2018 low to high. There was heavy selloff for HSI index as well. SSE was relatively holding well among the major indexes and is the only index with positive weekly close. It's time for the US getting more worries than China.

Index Weekly Wrap for the Week of Nov 30

Summary of Content for the Week of Nov 30:

1. Week 48 major index performance;
2. Week 48 SPY sector index performance;
3. Major index weekly charts of Support and Resistance levels.

US stocks rebounded this week just ahead of 2018 G20 leaders summit on Friday and Saturday. The three major US indexes added 4.8% to 5.6% for the week, DJI and SPX both closed positive YTD return after dipped to the negative previous week. The Nasdaq index gained 5.6% this week after it was wiped off almost all YTD gain the previous week. 

Among SPY 11 sectors, Health care(XLV) and Technology(XLK) sectors are the two top perform sectors with 6.95% and 6.02% gain respectively. 

In Asia, HSI and STI both rebounded to above their key support levels--50% fib from 2016 to 2018 low to high, 50% Fibonacci level for HSI at 25881 and 3085 for STI, which are bullish signs. SSE index relatively weak still in its 7-week bottom consolidation range. Refer to below index weekly performance and charts.

Index Weekly Wrap for the Week of Nov 23

Summary of Content for the Week of Nov 23:

1. Week 47 major index performance;
2. Week 47 SPY sector index performance;
3. Major index weekly charts of Support and Resistance levels.

US stocks plunged during Black Friday week, DJI was the worst performer with 1127 points or 4.4% loss for the week. DJI and SPX both had their YTD gain wiped off and Nasdaq YTD gained dropped to 0.52% only. The technology sector(XLK) was the worst sector among SPY 11 sectors with 6% loss for the week. Heavy weighted AAPL lost 11% this week. DJI closed below major uptrend line for the first time as seen in its weekly chart below, joined SPX index which broke its major uptrend line four weeks ago. 

In Asia, major indexes do not look like following exactly their US peers. HSI and STI lost 1% for the week and holding within their previous trading range, no big selloff. SSE closed at its 4-week low but within its bottom consolidation area. 

STI immediate support to watch is 3050 then 2950, immediate resistance level to watch is 3085 level. 

Index Weekly Wrap for the Week of Nov 16

Summary of Content for the Week of Nov 16:

1. Week 46 major index performance;
2. Week 46 SPY sector index performance;
3. Major index weekly charts of Support and Resistance levels.

US three major indexes dropped but all trading within their previous week range. No clear direction as all under consolidation. Out of 11 SPY sectors, 3 sectors closed positive and 8 sectors closed down. Consumer Discretionary sector was the worst sector with 3.32% down.

In Asia, China SSE index looks setting up a bottom just above 2600 level. As more and more foreign funds overweight on Chinese stocks. HSI and STI also closed positive this week but still within their previous week's trading range.

Index Weekly Wrap for the Week of Nov 9

Summary of Content for the Week of Nov 9:
1. Week 45 major index performance;
2. Week 45 SPY sector index performance;
3. Major index weekly charts of Support and Resistance levels.

US stocks closed up 2nd week in a row. Stocks continue to rebound after the mid-term election. Current momentum is obviously bullish. SPX next resistance is at 2815 level, which is this weekly high, expected to go up further if it broke above it.

In Asia, the three major indexes all closed down this week but all within previous weeks trading range. No clear direction to up or down at the current stage. Refer to major index weekly performance table below.

Index Weekly Wrap for the Week of Nov 2

Summary of Content for the Week of Nov 2:
1. US mid-term election on Nov 6;
2. Week 44 major index performance;
3. Week 44 SPY sector index performance;
4. October month major index performance;
5. Major index weekly charts of Support and Resistance levels.

World stocks rebounded this week, after a very bad Oct month. Well, historical statistics show stocks mostly performed poorly in Oct. (Refer to below table for major index performance in Oct month).
Next week will be a very important week as the US mid-term election will take place on 6 Nov Tuesday while Singapore market will be closed for public holiday. We should know the result on Wednesday, Nov 7 when market resumes trading. Do expect high volatility in stocks.

SPX and DJI rebounded back to their positive territory return YTD for the week. Refer to their weekly charts respectively, DJI ended closed above its major uptrend this week after dipped down below it intra-week; but SPX just bounced to the back of its major uptrend line and closed just below it.

Refer to below SPX daily chart(SPX.d), the first important Resistance level for SPX will be its 50% fib retracement at 2772(R1), that is also its 200dma resistance(green color MA). If the SPX were continue rebound above R1, then next target will be at 2812 level(R2), this level confluence with its horizontal resistance and its 50dma level.

Refer to below DJI daily chart(DJI.d), the first resistance will be 25536(R1) and then 25970(R2) should it continue rebound, it also confluence with its 50dma.

Refer to below daily chart for Nasdaq(Comp.d), first resistance is 7527(R1), which is also its 200dma level, 2nd resistance is 7670(R2), which also confluence with its horizontal resistance and 50dma, very important to watch.

Refer to below daily chart for HSI(HSI.d), the 1st importance fibo level is 27957(R1) should the market continue rebound, and 2nd is 29012(R2) which I think is unlikely. too far away...

As for Singapore market, STI next important resistance level is 3167-3200 level.