S&P 500 Technical Breakthrough

Technical Breakthrough
Last week marked significant gain in the financial markets; not only did we witness progress in the debt ceiling, but the S&P 500 also broke above the key 4,180 resistance point after weeks of consolidation. Given the break and the prevailing trading character, we anticipate the market index to approach 4,300.

Investor confidence continues to surge, spurred by the growth of mega tech and semiconductor stocks. The underlying theme driving these price movement is Artificial Intelligence (AI) demand.

Our strategy remains consistent - we continue to hold long positions in the market, eyeing for any signs of strength in stocks. One noteworthy performer is Pinduoduo (PDD, US), which successfully broke above its downtrend line. Coupled with the Fund Flow Index (FFI) in positive territory and Relative Strength (RS) breaking above its zero line, we foresee the price gaining more momentum as consumer sentiment and spending in China improve.

Headlines for Week Ahead:
US Debt Celling Negotiation final phase
US PMI
US Jobs Data
China Apr Eco Data
SG SPIMM PMI
SG Retail Sales
SG Short trading week (Vesak Day)

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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