Skip to main content

S&P 500 Technically Under Pressure

 



S&P 500 Technically Under Pressure
As shared during our previous weekly update, US FOMC announce was a likely trigger of a directional move on the markets after weeks of consolidation. The financial markets reacted negatively to the Fed's talk of tightening and the expectation of prolonged high interest rates in the USA. Soaring oil prices have also added to inflationary pressures.

Following a week of central bank announcements, the upcoming week will see a shift in attention towards key macroeconomic data. Markets will be focusing on the Personal Consumption Expenditures (PCE) Price Index, US FED’s crucial indicator of inflation trend. Data on personal income and spending will provide insights into consumer behavior and economic health.

From a technical perspective, the S&P 500 has recently exhibited a gap followed by a subsequent downward movement, which is generally considered unfavorable for the markets. This downward momentum may potentially lead to a mid term downtrend move.

In our strategic approach to trading and portfolio management, we will closely monitor our medium-term outlook for the US markets. And during this time, we will lookout for both bullish (LONG) and bearish (SHORT) trading opportunities for the upcoming week.

Lastly, our focus in the Greater China (Hong Kong and China) markets, remains on identifying long investment and trading prospects.

Headlines for Week Ahead:
US PCE Data
US FOMC members speaking at various events
China Aug PMI
SG Sept CPI
SG Ind Prod
US Corp Earnings (COST, MU, NKE)

Most Popular

Historical Stock Market Performance During the Year of the Snake (2025)

Historical Stock Market Performance During the Year of the Snake (2025) Introduction: The Chinese zodiac plays a fascinating role in shaping cultural beliefs and behaviors. Among the 12 zodiac animals, the Year of the Snake is often associated with intelligence, caution, and financial shrewdness. We take a simply review of three key indices, S&P 500, Hang Seng Index (HSI), and Straits Times Index (STI),  annual performance  during the Year of the Snake. Key Observations from the Data: S&P 500 Performance: Average annual return: 0.47% . Win/Loss ratio: 37.5% (3 years of gains vs. 5 years of losses). Notable years: 1989 marked a robust gain of 27.25% , while 1941 saw a steep decline of -20.22% , coinciding with global tensions during World War II. HSI Performance: Average annual return: -5.36% . Win/Loss ratio: 66.67% (2 years of gains vs. 1 year of losses). Notable years: The index's strongest year was 1989, with a return of 5.55% , while 2001 suffered a severe decli...
Read more

BYD Co (1211:HK) Witnessing Signs of Strength

BYD Co (1211:HK) Witnessing Signs of Strength On Friday, we observed strong buying within a wide trading range, with the stock closing near the day’s high and good volume recorded. The previous two days of selling showed relatively low volume, indicating potential supply exhaustion. The stock price is currently at a key resistance level, constrained by a downward trendline and a horizontal support-turned-resistance line. A breakout above this level could signal a potential trend reversal , with an initial technical price target of HK$300.00. The stock is outperforming the broader market, indicating strong market demand, as evidenced by our proprietary Relative Strength Indicator (RSI), which is above zero. Additionally, the volume momentum indicator (FFI) is improving, further supporting the possibility of supply exhaustion. The Stochastic indicator also continues to trend higher, reinforcing a bullish outlook. A stop-loss price is set below HK$248.40 . If the price falls below this l...
Read more

Week Ahead: Sustaining December’s Investor-Friendly Momentum

  Week Ahead, 2 Dec 2024   Macro News: Despite inflation remaining firm, the market continues to expect that the US Federal Reserve has a higher probability of cutting rates by 25 basis points at the upcoming FOMC meeting . December marks the final month of 2024 as we approach the year's end. Historically, the S&P 500 Index has been favorable to investors in December , with a 70.83% probability of a positive return and an average gain of 0.74%. We hope these trends persist in 2024. Currently, we have not identified any trade setups. We will provide updates if any opportunities arise. Medium Term: ·        S&P 500: The S&P 500 remains above the 6,000 level and could trend towards the 6,180 zone. ·        STI: The STI remains at the 3,700 resistance zone, with no major technical signals observed. If momentum sustains, the index could move towards the 3,860 level. ·     ...
Read more