DJI Chart Analysis

It has been a bullish week for Dow as investors are highly optimistic about the stimulus in the early weeks. However, a lack of actual progress on the relief helped the bears gain some strength towards the end of the week.
On the U.S economy, a better than expected NFP data shows that the labour market remained quite steady, though still a drop compared to the previous.

Week ahead:

On fundamental, we have to watch for the U.S – China tension.
With the Executive Order, which aims to purge “untrusted” China companies (WeChat and TikTok), share prices of other U.S listed Chinese companies had been affected.
Microsoft has been given 45 days to complete the purchase of TikTok operations, which might also be a challenge.
On Technical, we saw weakening momentum as prices continue to climb higher. Nearing June high of 27600 level, some pullback / profit taking would be expected.
Key level to watch: 26700.

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