S&P 500 testing resistance, expect trading to remain volatile for the week ahead

Thoughts on Week Ahead:

Week 2 Oct 2023

Stock markets rebounded by the end of the week due to positive inflation data from both the US and Europe and a slight drop in bond yields. Anticipations are building if positive corporate earnings could carry into Q3, as the upcoming quarterly reporting season beings in mid-October.

Technically, S&P 500 is testing the 4,335 neck line resistance level. Bulls and bears are expected to battle in this zone and market could remain choppy for the week. We will classify the market as bullish once index breaks above 4,400 level.

Straits Times Index (STI) continues to trade in sideways. Currently, resting at middle line, we are looking for more indicators for directional moves.

Gold's key technical support at US$1,800/oz after felling close to -4% for the week.

In the upcoming week, investors will be looking out for US FED Chairman, Jerome Powell’s speech and September job numbers.

We have no trade set up identified for the week ahead and will update once we uncover any.

Headlines for Week Ahead:

US FOMC Minutes

US NFP, ISM Mfg/Services & Sep CPI Reports

SG PMI & Retail Sales

China’s National Day Golden Week Holiday

HK markets closed on Monday

Blog 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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