The Week Ahead Jan 2022 – [STI, HSI, NASDAQ & S&P]
The Nasdaq 100 is in correction territory falling over 13% while the S&P 500 pull backed over 8%. BUT, if you noticed something, both HSI and STI didn’t fall! Are we starting to see something interesting here? Is this the start of some value surfacing from the Hong Kong market? Read on!
Key Events to Watch For
Tuesday – FED MEETING
Wednesday – FED INTEREST RATE DECISION
Thursday – Initial Jobless Claim
The Federal Reserve’s meeting Tuesday and Wednesday is the big event for markets in the week ahead, with investors hoping for more guidance on the central bank’s plan to raise interest rates. Markets have been lackluster and awaiting further direction from the Fed.
Technical Levels to Watch For This Week
STI
STI remaining resilient even though there was a sell down over in US. Banks ,commodity and energy stocks gave a helping hand to support the index. We are now very close to the 3300 psychological resistance and we would prefer some pullback first before making a move. A pullback to that uptrend line is healthy to us. Electronic stock in Singapore saw a pullback due to interest rate concerns as investors took profit off the table first. There might be more downside for this sector. So holding back first.
HSI
Another index that showed resilience is the HSI! China cut its lending rates this week while US is looking to increase its interest rates. Could the Hong Kong and China market outperform US this year? We covered that in our webinar last week! We are hopeful! The HSI managed to regain footing above the uptrend support turn resistance line and even close above the 5ema. There are very positive signs and even on the backdrop of Xi Jinping no mercy in corruption and monopoly crackdown in the later part of the week. More upside might be seen to 25400 levels but of course markets are still looking to fed meeting before making major moves. Keep a watch!
For more analysis on the US market and where it might head to, you can click HERE!
Have a good week ahead!
Yours
Humbly
Kelwin&Roy
