It was no surprise that markets fell through the week with the S&P500 falling 1.5% for the week. We’ve been warning about Sept being a weaker month and we’re currently seeing that weakness flowing through now. How deep will this pullback be? We did mention about this in our previous webinar and a pullback of about 5-10% is within expectation.
And this week would be interesting as CPI & PPI will be out on wed & thursday. This would be crucial as Oil is starting to spike and there has been murmur about inflation moving up. This week’s data would be useful in helping to decide if Fed would increase their rates at the next meeting. So do take note of this.
STI
STI didn’t go as planned as we the overall bearishness in the US & HK market flowed into our Straits Times Index. We didn’t see a continuation of the rebound and now could see some downside instead. It is currently at the support level of around 3200 and if this break we could see the downside to 3180 then 3150. Looking at more downside for the week.
HSI
The Hang Seng Index also pulled back on worries about China’s property stock falling out plus a slowing economy doesn’t add well to the mix. It was a short week as HK was closed due typhoon warning. For the week, we could see more downside again taking the Hang Seng Index to 17500 level. Wait for a base to form before adding and of course with the right allocation.
Head over to our FB page for more updates on the US markets.
Yours
Humbly
Kelwin&Roy
