This Various Sentiments Potentially Make The JCI Weak Tuesday

Illustration. (Photo: Doc. Antara)

JAKARTA - The Composite Stock Price Index (JCI) closed down 0.64 percent to the level of 7,176.42 in the match on Monday 27 May. JCI has the opportunity to return to "disadvantaged" in today's trading, Tuesday, May 28.

Phintraco Sekuritas in his research said the JCI closed the pullback at the close of trading Monday, where there was a potential death cross accompanied by a positive narrowing of the MACD slope as well as the Stochastic RSI which tended to move down to the oversold area after penetrating the pivot area.

"Thus, the JCI has the potential to weaken by testing the support of MA20 in the 7,150 area on Tuesday," explained the research of Phintraco Sekuritas.

There are a number of sentiments that will affect the JCI today. Among them are the weakening of the domestic market in response to the Fed's minutes on the policy of cutting interest rates when inflation reaches 2%.

According to a CMEFedWatchtole survey on cuts in September, economist confidence to contain the policy reached 50.20 percent, while the cutting policy received support of 44.90 percent.

"In addition, the release of M2 Money Supply data in April fell to 6.90 percent from the previous month which was at the level of 7.20 percent. This decline was influenced by high interest rates in the last two months."

From a global perspective, investors are looking forward to releasing CB Consumer Confidence data in May which is expected to decline to 96.00 from the previous month which was at 97.00.

This decline is considered an indication of consumer pessimism of economic conditions. Along with unsatisfactory labor data, this could potentially result in a decline in public spending.

"The decline in spending not only has the potential to reduce inflation rates, but can also slow down overall economic growth."