Stock market consolidating for directional move

Thoughts on Week Ahead:

Week 11 Sept 2023

Stock market consolidating for directional move

In the US, stocks fell for the third consecutive week, with the S&P 500 index down 1.29%. Possible driver of the sell-off could the decision by Saudi Arabia and Russia to extend their oil production cuts until the end of the year, adding to potential inflationary pressure.

Technically, S&P 500 continues to consolidate around 4,400-4,500 area for directional move. While HSI, pulls back to 18,200 area on weak China economic data.

We have yet to uncover tactical set up for the week ahead but will remain on the lookout. Have a great trading week ahead.

Headlines for Week Ahead:

Apple Event (Tues)

US Aug Inflation, PPI, Retail Sales Report

China Employment, Ind Prod, Retail Sales

SG 2Q23 Employment Report

SG Presidential Inauguration (Non-mkt event)

SG F1 Race Weekend (Non-mkt event)

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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