Fed made their statement last week and market had an initial reaction to the upside then started to retrace. The S&P500 also couldn’t break our 4200 and the greed and fear index was at extreme greed retracing slightly to the greed level. With the resistance hit, don’t forget to check out our facebook page to know more about our view with regards to the S&P500 and Nasdaq 100.
In addition, China’s weather balloon is causing some stir between the two world power. After shooting down the supposedly weather balloon, US has moved on to blacklist six entities linked to the weather balloon incident. How will this play out? As more information is gathered and if US continues to investigate this incident, more could be uncovered and if negative actions were to come, markets could have a knee jerk reaction. Its important to see what further action US might take and will this be the end of the search. BUT any pullback to a good support level would be a good chance to continue to scale into the market.
Lastly, AI or artificial intelligent is causing a lot of hype in the market and the shares which we shared during our market outlook are seeing a good movement up. Will be sharing more stocks that we can look at with regards to this big theme! Look out for it!
STI has pushed lower to our 3336 target before having some rebound. For this week, STI will follow closely to the three major banks results with DBS kick starting tomorrow before market opens. With the results, that could set the tone for the STI to follow and we would watch it first before making any moves. Significant support at 3271. Upside resistance at 3392.
HSI also facing a pullback after its uptrend support and the next support would be around 20624. Would take the chance to scale in for the longer run as this pullback does present a good opportunity for those who missed out on the massive rally. HSI at 20k would be another area to consider scaling in. China/HK would also be looking to how US continue to respond in the latest weather balloon shooting. So keeping a close eye on that.
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