The Week Ahead (12) - [STI, HSI, NASDAQ & S&P]

Markets ended the wild week on the down side after Fed’s statement of a faster tapering and more rate hike in 2022 initially sent the markets up but worries of a tighter monetary policy and the ongoing pandemic, leading to a losing week for the major averages.

Shares in Chinese healthcare and technology firms tumbled after a report that the United States would add more Chinese firms, including the largest commercial drone maker and biotech firms, to investment and export blacklists this week.

What a week it has been.

Key Events to Watch For

Tuesday – US producer price index , this measures the change in the price of goods sold by manufacturers. It is a leading indicator of consumer price inflation, which accounts for the majority of overall inflation.

Wednesday – US core retail sales and US retail sales

Thursday – Initial Job claims , this measures the number of individuals who filed for unemployment insurance for the first time during the past week. This is the earliest U.S. economic data, but the market impact varies from week to week.

We need to see the support for S&P holding if we want to see any last minute rally for the year.

Technical Levels to Watch For This Week

STI

Chart source: AdvisorXs

STI wasn’t spared the sell down and is sitting precariously on its double support. The horizontal support and the uptrend support line. There is a volume increased which might favor the downside and if that support breaks it is possible for a retest of around 3033 area. Its not looking good for STI now. Be prepared for further downside. It couldn’t cross the 20ema which is not ideal. Only our banks saw a push up.

HSI

HSI started well, above that uptrend line we drew but couldn’t break the 20ema. It broke below the trendline support as more Chinese companies were added to the US blacklist. Tech stocks also took a hit as inflation concerns continue to linger. It was a nasty week for HSI. The immediate support is at 23k but it does look precarious too. The next support might be around 22399.

For more analysis on the US market , you can click HERE!

Have a good week ahead!

Yours

Humbly

Kelwin&Roy

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