S&P downgraded its outlook on Italian government debt from "stable" to "negative", causing the major market to open sharply lower on the start of the week. However, the major market heavy selling on Monday seems to be too emotional and started to buy back. The only exception is Shanghai Composite Index to continue to trade lower due to the economic forecast being lowered.
The Singapore Straits Times Index
STI gapped down on Monday and traded sharply lower, closing below the 200-day moving average, it then spent the following 3 days supporting along the 50-day moving average and finally climbed above the 200-day moving average on Friday. 3120 is a key level to watch next week.
The Hong Kong Hang Seng Index
HSI opened sharply lower on Monday and close even lower, which is below the 200-day moving average. It has certain similarity to the STI pattern whereby it spent the remaining days of the week trading back to above the 200-day moving average level. 23033 is a key level to watch next week.
The Shanghai Composite Index
SSEC opened lower on Monday and closed sharply lower, which is below the 200-day moving average. It continued to trade even lower the remaining days and ended the week down a total of 5%. 2680 is the low level in Jan 2011 and a key level to watch next week.
The S&P 500
SPY gapped down on Monday following the Asian markets heavy selldown. However the market bought back the weakness and climbed higher throughout the week. It closed above the 50-day moving average on Friday signifying that the market sentiment remain strong. 133 is a key level to watch next week.
The Dow Jones Industrial Average
DIA gapped down on Monday following the Asian markets heavy selldown. However the market bought back the weakness and climbed higher throughout the week. It closed on the 50-day moving average on Friday signifying that the market sentiment remain strong. 124 is a key level to watch next week.
The Nasdaq
QQQ gapped down on Monday following the Asian markets heavy selldown. However the market bought back the weakness and climbed higher throughout the week. It closed slightly below the 50-day moving average on Friday signifying that the market sentiment remain strong. 57.5 is a key level to watch next week.
