U.S. Stocks 

Fundamental Analysis: 

The S&P 500 index in the U.S. stock market closed slightly higher in a shaky session yesterday, on 19th August 2021. The gains in technology stocks overshadowed the declines in cyclical stocks. Simultaneously, investors are weighing the strength of the economic rebound and determining when the Federal Reserve might start tapering its monetary stimulus measures.

Data shows that the number of U.S. initial jobless claims dropped to the lowest level in 17 months last week, indicating that the number of jobs in August is expected to post another strong gain.

The stock market fell sharply yesterday after minutes from the Fed’s July meeting showed that officials believe it is “likely to reach” a key threshold for tapering support measures this year.

The Dow fell by 0.19%, the S&P 500 rose by 0.13%, while Nasdaq rose by 0.11%.

The rebound in the U.S. economy, including strong second-quarter corporate earnings and accommodative monetary policy, has bolstered positive sentiment toward the stock market. With this, the S&P 500 index was by about 100% since it hit a pandemic low in March 2020.

Therefore, the key economic variable in the market outlook is still inflation. Will the inflation be temporary or permanent? To what level of inflation will the Fed tolerate in order to achieve the goal of full employment?

Technical Analysis: 

(Dow30，1-hour chart) 

Execution Insight:  

On Dow, pay attention to the 34990-line today. If the Dow breaks through the 34990-line again in the future, then pay attention to the pressure on the 35110-line after its rebound. If the Dow runs steadily below the 34990-line, it will still maintain the bearish trend. At that time, pay attention to 34724 and the support strength of 34477.

Hong Kong Stocks 

Fundamental Analysis: 

The U.S. Federal Reserve’s gradual move towards the tapering measures set off the global market panic. Overnight, the three major U.S. indices rose and fell, while Hong Kong stocks were under pressure in the early trading session.

The Hang Seng Index opened by 0.3% lower at 25241-points, the Hang Seng China Enterprises Index (HSCEI) fell by 0.24% at 8894-points, while the Hang Seng Technology Index fell by 0.38% at 6020-points.

Among the China blue-chip stocks, China Unicom (Hong Kong) rose by 5.62%, CSPC Pharmaceutical Group rose by 3.12%, and Country Garden Holdings rose by 2.8%. In addition, Alibaba fell by 2.47%, CNOOC fell by 1.97%, and WuXi Biologics (Cayman) fell by 1.85%.

Technical Analysis: 

(HK50，1-hour chart) 

Execution Insight: 

HK50 remains bearish towards the trend today, focusing on the suppression of the 25160 and 25816 positions at the top, as well as the support of the 24469-line at the bottom.

FTSE China A50 Index 

Technical Analysis: 

(A50，1-hour chart) 

Execution Insight: 

A50 has opened up a greater downside potential. Today, we focus on maintaining the bearish trend. On the top, focus on the suppression of the Bollinger Band middle track. On the bottom, focus on the supporting strength of the the14669 and 13983 positions.

Disclaimer 
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