Indices Relative Performance

The world is witnessing one of its toughest moments which would reshape geographical, political & economic orders for the next decade. As the global economy was digging for recovery solutions from the COVID-19 impacts including skyrocketing commodity prices, inflation, unemployment & interest rate hiking decisions.


There is no doubt that the current global disruption will enforce negative consequences on all economies however, these consequences would be relative and this is the core findings of this content; analyzing relative performance for selective stock indices.


Ranking the indices’ performance versus the S&P 500, it is concluded that Indian SENEX, Japanese Nikkei, Hong Kong’s Hang Seng, Saudi’s TASI & UK’s FTSE are still in performance parity with the U.S S&P, ranked from the closest parity to the least, respectively. However, the acceleration witnessed for the S&P 500 performance versus Hong Kong’s Hang Seng since February 2021 shifted in favor of Hang Seng in the last quarter. On the other hand, both the Indian SENSEX and Japanese Nikkei have been outperforming the U.S S&P since March 2022 to date and apparently, the down performance of the U.S S&P versus the rest of the indices is smoothing down with the European STOXX600 in equal performance to the S&P since April 2022 to date. 




S&P 500 monthly technical analysis:

The index reached an all-time high in January 2022 at 4,820 with a 119% return since March 2020 bottom. In June 2022, the index tested the 50% correction and closed below the 20 EMA at 38% correction, giving up approximately 22% from January 2022 gains. Q2 contributed 17% of the 22% losses. May 2022 acted as the millstone for the index’s performance drawback versus the above indices. Although the 50% correction is a bullish zone, the bullish sentiment won’t revive back unless trading above the 4,300-price zone.




Hong Kong’s Hang Seng Monthly chart:

The index peaked in January 2018 recording a high of 33,530 reflected in an 84% gain from the February 2016 bottom. Following, the index traded at lower highs while maintaining the same support zone at 22,590. from March 2020 to October the same year, the index traded below the 100-exponential moving average wile maintaining the same support level, which is not the current case where it traded below the 100 exponential moving average in November 2021 and closed below the 22,590 support level in march 2022. In Q2 2022 the index sustained higher closing prices while conservatively maintaining the same support levels, Q2 gain was approximately 1%. Breaking the current support price level for July at 20,068 would cause more downward volatility that leads the index to 19,100 and then back to the February 2016 low of 18,100. On the other hand, breaking the 22,590 resistance level would save the index from the bearish view although it will be trading below the 100 EMA near the 24,500 resistance levels at the 50% retracement levels.  On a separate note, the Hang Seng gave up 34% of its gains from the march 2018 peak till June 2022.




The content published above has been prepared by CFI for informational purposes only and should not be considered as investment advice.  Any view expressed does not constitute a personal recommendation or solicitation to buy or sell.  The information provided does not have regard to the specific investment objectives, financial situation, and needs of any specific person who may receive it, and is not held out as independent investment research and may have been acted upon by persons connected with CFI.  Market data is derived from independent sources believed to be reliable, however, CFI makes no guarantee of its accuracy or completeness, and accepts no responsibility for any consequence of its use by recipients.