The Week Ahead (11) – [STI, HSI, NASDAQ & S&P]
It was a week of rebound as we saw markets having a rebound after the omicron scare. If you follow our post last week you would have read that we were expecting a rebound given that the greed & fear was at the extreme fear side. 😀
The S&P 500 and Nasdaq Composite added 3.8% and 3.6%, respectively, last week — the best since February for both indexes.
Are we setting ourselves up for a year end rally? Read on to find out more! But before that, lets see what are the key events to watch out for this week.
Key Events to Watch For
- The Fed will hold its final meeting of the year on Tuesday and Wednesday and Chair Jerome Powell and his colleagues are expected to discuss accelerating the wind-down of the central bank’s $120 billion a month pandemic-era asset purchase program. This might cause some volatility in the markets as they look to see what will Powell do with regards to inflation which can no longer be ignored.
- The U.S. is due to release data on producer price inflation on Tuesday, which will be crucial to see how inflation is like and market might react to it too.
Technical Levels to Watch For This Week
STI
STI also saw a rebound too as banks, commodities saw some bargain hunting. STI punched through the 5ema, gaining grounds above that uptrend support. It came very close to our first rebound target of the 20ema at 3160 level. For this week, we might see some profit taking and a test of that 20ema. A break might take us to 3208. 20ema is usually not an easy resistance to break so it’ll require some good momentum to push it through it! We’re still bullish for a year end rally! But if STI can’t pass the 20ema it might start to gather around 3130 area to store some energy before a move.
HSI
HSI was off to a shaky start but the support held well and we saw an eventual rebound that came for the week. HSI is halfway through the rebound and its sitting just at the uptrend which we drew. We might see a further push to 24667 if events this week don’t give markets any scare as Fed start their last meeting for the year!
For more analysis on the US market , you can click HERE!
Have a good week ahead!
Yours
Humbly
Kelwin&Roy
