Wall Street closed out 2022 with its worst performance since 2008, and even the S&P 500 index corrected nearly 20% YTD. Chinese manufacturers’ activities shrunk for three consecutive months in December, the fastest decline since the Covid 19 pandemic began three years ago, right after China loosened its zero-Covid policy. China’s Dec. PMI dropped to 47 from 48 in November (per Reuter’s consensus at 48). The increasing Covid spread is feared to cause labor shortages and supply chain disruptions. Moreover, the weakening demand, global recession threat amid rising interest, inflation, and the Russia-Ukraine war will still block China’s exports; affect the major manufacturing sectors and hamper their economic recovery.

JCI closed 2022 with a 4% market return, as it could not return to the 7000 level or higher. There is still hope for the January Effect as long as JCI is able to stay above the MA10 & MA20 Support within the range of 6830-6820. The golden cross of MA10 & MA20 is expected to become a short-term Uptrend platform towards the TARGET of around 6950-6960, up to 7000 as psychological Resistance. A line of economic data will also be a catalyst, starting with Indonesia’s Core Inflation rate, which is predicted to rise by 3.39% (vs. previous 3.3%). NHKSI Research suggests an overall Hold position and reminds the Average Up to be done after yesterday’s High of 6888.

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