Normal pullback in U.S and SG market. China/HK recovering. Weekly observation 12Nov2021

SG(risk-on) HK(risk-off) CN(risk-off)

Normal pullback in U.S and SG market. China/HK recovering. Weekly observation 12Nov2021
Photo by Jared Schwitzke / Unsplash

After enjoying 5 consecutive weekly rise, S&P500 had a normal pullback down 0.31% this week. This is a normal, healthy pullback. The rally in U.S stock market is intact.

Like S&P500, Straits Times Index also had a normal pullback down 0.43%, though it looked worse due to the reversal bar on 9Nov2021. The rally in Singapore stock market is still intact.

What shows promise are China and Hong Kong stock markets, particularly China.

I am not impressed with the performance of China and HK stock indices because they look like normal rebound after weeks of bearish performance, with the exception of Shenzhen Composite Index. What makes me optimistic is the performance of China's broad market for past 3 weeks.

The number of China stocks rising above 21day, 50day, 200day moving averages have been steadily improving for 3 weeks. Number of stocks near 52-week high vs 52-week low has markedly improved at 110 vs 3.

Updated Broad market statistics 29Oct21 to 12Nov21 (errors in original one)

Hong Kong's broad market also showed improvement this week, although the improvement is not as impressive as China's.

I will be observing China's stock market in the days ahead. For the time being, I am still not buying. Market conditions have not yet recovered enough for me to feel comfortable buying.


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