Thoughts on Week Ahead 20 Feb 2023: S&P 500 Technical Momentum Turned Uptrend

S&P 500

Airbnb Inc (ABNB)

Thoughts on Week Ahead:
Week 20 Feb 2023

S&P 500 Technical Momentum Turned Uptrend
Although there may be short-term volatility, the technical momentum for the US market has turned upward. As a result, we will be reallocating the SPY ETF back into our hypothetical portfolio.

The travel sector is showing positive technical indicators, particularly Airbnb, which recently broke above its accumulation zone. Our Relative Strength and Fund Flow Index are also trending higher, suggesting that the price is likely to enter its Mark Up phase. Given these trends, we will be adding a tactical position in Airbnb (ABNB).

Market participants are anticipating the release of the FOMC Minutes this Wednesday, significant event of the week. US markets will be closed on Monday in observance of Washington's Birthday.

Headlines for Week Ahead:
US FOMC minutes, US Jan PMI, US 4Q22 GDP (2nd), US Jan PCE, US market shorten trading week, Corp Earnings (Alibaba, HD, Coinbase, NVDA, WMT, LCID, UOB, OCBC, CDL, SIA, Genting SP, Wilmar, Venture)

Disclaimers apply

Wyckoff's Law of Effort

Law of Effort Wyckoff's Law of Effort states that on any single trading day (or week depending on time frame), huge volume (effort) push by participants should see huge price movement, resulting in a wide spread (long body). This is a basic principle of effort and result. However, as per Singtel's case study, we saw huge selling volume on 11 May, yet the price action only shows a narrow spread (small body). This divergence of effort and result in Wyckoff's Law of Effort principles, indicates possible exhaustion in selling or hidden buying. Thus, with a lack of weakness, Singtel should continue trading range bound for the coming days or weeks till further strength or weakness is observed. Swing Traders who trades range can consider positions at 3.70-3.72, with exit target 3.76-3.78.

DBS Group Holdings (D05): Upward Move Expectations

DBS Group Holdings (D05) Upward Move Expectations Technically, price trading above 36.58, could see DBS Group retest previous high of 38.55. Both Relative Strength and momentum indicator FFI are supportive of the move. Stop below 35.42 Disclaimers apply

Keppel DC REIT (AJBU): Expect price to trade towards S$2.00

Keppel DC REIT (AJBU) Expect price to trade towards S$2.00 We have observed a decrease in technical supply at the S$1.80 support area during recent trading sessions. Furthermore, a softer interest rate outlook could be advantageous for the Data Centre operator. Consequently, we anticipate the REIT to move towards our initial target of S$2.00, with the potential to reach S$2.20 if it breaks through resistance. Our stop level is set below S$1.72. Disclaimers Apply

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