After a month’s long rally, its about time for US markets to pullback. S&P500 indicators are currently in an overbought state and some pullback in the markets is expected and normal. GDP data for the US will be out this thursday indicating if the economy is diving further into recession and could add further tension to the markets.
STI saw a pullback as mentioned but has not gone down to our target yet so there might be more downside for the STI in the coming week. Banks are pulling back which will cause the index to pullback too. But despite some weakness, we saw tourism related stocks doing well for the last week before a pullback came. Looking for some short opportunity next week.
HSI hasn’t rebound last week as we expected but the rebound might be closing in as HSI looks to stabilize itself and build a base. The support of around 20k is holding and most tech companies have reported their results. Tencent despite missing estimates and its first time for revenue declining managed to still see its stock price move up. Alibaba is also holding up well and we might see some rebound coming soon too. Our upside rebound target for HSI is at 21262.
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Kelwin & Roy