The Week Ahead April 2022 – [STI, HSI, NASDAQ & S&P]
Fed will shrink balance sheet ‘rapidly’ and it also sent the market into a rapid descend during the week. As fed continues to tighten monetary policy through a series of interest rate increases and by starting to reduce the balance sheet, markets didn’t take it that well and started selling off especially the tech related sector.
We’re not out of the woods yet as key indices are near key support levels and we need to see support before making any moves.
As mentioned, STI came off and went down to the 20ema support. It saw a slight rebound but we’re not convinced of it yet and might be heading lower to 3340 first. Although the STI is down, there are some pocket of stocks that are up like Sembcorp Industries, coal related stocks which we are glad we have caught them. So do look at individual stocks to see their strength too.
HSI moving in a bit of sideways unable to push higher but yet not pulling lower. The consolidation band is around 21260 level to 22397 area and we’re looking to see where it’ll go for now. Odds are for it to shift lower for a better entry unless there is strength to break that downtrend line and then the resistance of 22397. Looking for a clearer picture for the HSI.
For more analysis on the US market and where it might head to, you can click HERE
Have a good week ahead!