S&P 500 at All Time High & Week Ahead

The S&P 500 has reached an all-time high, driven predominantly by the strength of tech stocks. From a technical standpoint, the index is showing resilience as long as it stays above the 4,800 level, leading us to anticipate a potential move towards the 5,000 mark. Nevertheless, our volume-based momentum indicator (FFI) is displaying divergence, prompting a degree of caution regarding the current phase of the rally.

In the semiconductor sector, stocks are still reaping the benefits of the ongoing upturn cycle, notably with NVidia (NVDA) taking the lead. Looking ahead, the upcoming week will feature Tesla's results, offering some valuable insights into the electric vehicle market, while Visa's report will shed light on consumer confidence.

Micron Tech (MU), price broke above consolidation range, potential move towards 94, possible 100. Stop below 84.00 (10 SMA).

Our stance on the US market remains bullish, maintaining a long position, but we exercise selectivity when it comes to the Singapore and Hong Kong markets.

Headlines for the week:
- Corp Earnings (Tesla, Netflix, Visa, Intel, SG REITs)
- US PCE, 4Q23 GDP
- China LPR Fixing
- SG Dec CPI, Dec Ind Prod, MAS Policy, Unemployment Rate

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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