The Dow Jones Index continued to rally by gaining 0.8% or 268 points, followed by the Nasdaq +1.8% and S&P500 +1.3% after the market participants expected the inflation data (Dec.) will able to show a decline, judging from the labor report (Dec.), which has also started to narrow. Economists expect CPI to ease to 6.5% YoY (Dec.) from 7.1%, supported by lower car prices, oil prices, and rent prices. Then the Fed is expected to ease its monetary policy. The rise in Wall Street indices is due to the sentiment from the banking sector, where the quarterly performance report will begin to be published this Friday. Additionally, investors have lowered their expectations on earnings due to rising costs, but this might likely lessen any negative surprises that may arise.
On the other hand, JCI continued to experience a decline by 38 points, closing at 6584, amidst strengthening IDR across EM counties, with an exchange rate of IDR15527/USD, a gain of 62 points (0.4%). Investors started to analyze the economic outlook, where the World Bank also cut this year’s economic growth projection to 1.7% from 3%. JCI once tested the lower Support level at 6558 Low, although it could still close slightly above the shortterm Trendline. Even though the advice to Wait & See is still dominating, the gradual buy of blue chip stocks in the Support area is starting to be attractive as a second option. If a technical rebound occurs as RSI still consistently shows a positive divergence, then the closest TARGET can be reached is 6650-6700 or 6750-6780.
Download full report HERE.
