Again, market participants eagerly anticipate clues this week

Market narrative largely remains the same as last week. Again, participants eagerly anticipate clues from corporate earnings to assess the impact of the prevailing high-interest environment on future outlooks.

This week, major tech companies are set to report their earnings. Market observers will be closely watching Amazon (AMZN) as a gauge for consumer spending, while Alphabet (GOOGL) will provide insight into corporate marketing expenditures. Visa (V) is expected to offer a glimpse into the travel industry's outlook, and ExxonMobil (XOM) will reflect global economic activity.

From a technical perspective, the S&P 500 continues to trade within a narrow range below the critical 4,180 resistance level. We have nil tactical ideas for week, closely monitoring for directional breakout.

I have not discussed Straits Times Index (STI) for sometime, as index continues trading within 3,000 - 3,450 range since April 2022.

Additionally, United Overseas Bank (UOB), is poised to shed light on Singapore's economic performance.

Headlines for Week Ahead:
US PCE
US Adv GDP 1Q23
SG CPI
US Earnings (MSFT, GOOGL, META, AMZN, KO, V, XOM)
SG Earnings (UOB, Wilmar)
China Earnings (Kweichow Moutai, PingAn Ins, BYD)

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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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