Market momentum continues

S&P 500 Technicals: Momentum continues to trade on the upward trend and is expecting to retest 4,180. Index could trade higher if 4,180 key resistance is broken.

Softening PCE Data: The US Federal Reserve's preferred inflation indicator, the Personal Consumption Expenditures (PCE) data, has shown signs of softening. As a result, the market is increasingly anticipating that the Fed's rate hike cycle could peak relatively soon. This could present opportunities in interest-sensitive sectors such REITs.

1st Earnings Reporting since China Reopen: Stocks with exposure in China, HK and Asian markets, could potentially see a boost, given that this will be the first quarter following China's unexpected reopening earlier this year.

Please be advised that global markets will be shortened for Good Friday.

Headlines for Week Ahead:

US Job Opening, US NFP, US ISM Mfg, China PMI, SG PMI, SG Retail Sales, Shortened Trading Week.

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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