Vietnam Insight

Starting the new year on a stable note. On Thursday, the benchmark indices began the day with gains but reversed course in the latter part of the session. The Dow dropped 0.36%, the S&P 500 declined 0.22%, and the Nasdaq Composite fell by 0.16%. The Dow's losses marked its fourth consecutive decline, while the S&P 500 and Nasdaq each posted their fifth straight drop. Looking ahead, investors are focused on Friday’s ISM Manufacturing Index and further comments from Federal Reserve officials for additional economic insights.

Cash flow continued to stay on the sidelines. The VNINDEX closed at 1,269.71 (+2.93 points, +0.23%) with lower-than-average trading volume over the past 20 sessions. The market exhibited strong divergence, with the transportation and chemical sectors closing in the green. Foreign investors net sold 98 billion dong. In a positive scenario, the market needs stronger buying pressure to be able to return to the resistance level of 1300. 

Trading Strategy: Investors are closely monitoring the index's reaction near the resistance levels of 1,280 - 1,300, as this is a zone with high selling pressure. Even if the index manages to surpass this level, a minor correction is entirely possible. Therefore, it is recommended to be cautious with buying at this time and wait for clearer confirmation signals