U.S. Stocks
Fundamental Analysis:
U.S. stocks plunged on Monday, 13th June 2022, with the S&P 500 Index confirming it is in a bear market, fueling concerns that an expected aggressive Federal Reserve rate hike could push the economy into recession.
The S&P 500 has fallen for four straight days, the longest sustained round of declines in three months, and by common definition, the index is now down 21.8% from its most recent record closing high, confirming it has been in a bear market since 3rd January 2022.
The major S&P sectors closed sharply lower, with only five sectors closing higher. The market has been under pressure so far this year as rising prices, including a jump in oil prices due to the war in Ukraine, have pushed the Federal Reserve to take strong action to tighten monetary policy, such as raising interest rates.
Growth stock giants such as Apple, Microsoft and Amazon have caused the biggest drag on the S&P 500. The yield on the benchmark 10-year U.S. Treasury note touched 3.44%, the highest since April 2011.
In a rising interest rate environment, growth stocks are more likely to see their earnings suffer.
By the close, the Dow Jones Industrial Average was down 876.05 points, or 2.79%, to 30,516.74, the S&P 500 was down 151.23 points, or 3.88%, to 3,749.63, and the Nasdaq was down 530.80 points, or 4.68%, to 10,809.23.
Technical Analysis:
(Dow 30, 1-hour chart)
Execution Insight:
The Dow focuses on the 31291-line today. If the Dow runs stably below the 31291-line, it will pay attention to the support at 30350 and 30083. If the Dow rises above the 31291-line, it will pay attention to the support at 31661 and 32083.
Hong Kong Stocks
Fundamental Analysis:
Hong Kong stocks continued to retrace their opening trend. Hang Seng Index (HSI) opened 1.35% lower, and Hang Seng TECH Index (HSTECH) fell 2.05%.
On the board, technology stocks in general fell, NIO Inc. (9866.HK), BeiGene, Ltd. (6160.HK) fell nearly 9%, Baidu, Inc. (9888.HK), Bilibili Inc. (9626.HK) fell nearly 6%, and Alibaba fell more than 5%.
XPeng Inc. (9868.HK), Yum China Holdings, Inc. (9987.HK) fell more than 4%, GDS Holdings Limited (9698.HK) fell nearly 4%, New Oriental Education & Technology Group Inc. (9901.HK) fell more than 3%.
In terms of individual stocks, it is worth mentioning that New Oriental Online opened 8.5% higher, extending its previous gains.
Technical Analysis:
(HK50, 1-hour chart)
Execution Insight:
HK50 focuses on the 21450-line today. If HK50 can run stably above the 21450-line, then pay attention to the suppression strength of 22127 and 22785. If HK50 runs below the 21450-line, then pay attention to the support strength of 20467 and 19517.
FTSE China A50 Index
Technical Analysis:
(FTSE China A50, 1-hour chart)
Execution Insight:
FTSE China A50 focuses on the 13544-line today. If the A50 runs steadily below the 13544-line, it will pay attention to the support strength of the two positions of 13157 and 12945. If the A50 runs above the 13544-line, it will open up further upward space. At that time, pay attention to the two positions of 13970 and 14253.
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