Three US main indexes closed lower, with the Nasdaq at its lowest point in 2022, as Pending Home Sales (MoM) (Nov) economic data fell 4%, higher than expected from minus 0.8%. The increase in Covid cases in China and the Russia-Ukraine geopolitical tensions have also affected the negative sentiment in the stock market. The energy sector posted the most significant decline of 2.2% on fears of disruptions to Chinese demand due to the rapid spread of Covid. The S&P500 fell by 20% YTD, the biggest drop since the financial crisis in 2008. Moreover, the market sees a 69% chance of FFR rising at 25 bps on the FOMC Meeting next February, with FFR standing at 4.94% in the first half of next year.
JCI pullback after reaching 6950-6960 Resistance is still considered a reasonable consolidation as long as the MA20 & MA10 Support Test does not end with a Closing below 6825-6815. Foreign again posted a Net Sell (all market) of IDR461.32 billion, with reducing positions last week in blue chip stocks, such as BBCA, TLKM, GOTO, BBNI, BMRI, ASII, and BBRI. Despite the short-term bullish, JCI still has a chance to reach the 7000- 7100 target by the end of the year. NHKSI RESEARCH advises traders/investors to do a gradual buying strategy and pay attention to money management.
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