Weekly Markets Outlook

Weekly Market Outlook: 8 April 2024

Last week marked a critical juncture for US markets as the S&P 500 broke below its upward trendline support, suggesting the possibility of sideways or downward trends in the medium term. Short-term traders in the US market are anticipated to exercise caution, while long-term investors will be seeking opportunities to take profits and adjust their positions.

Companies exposed to oil or gold may attract investing interest as commodity prices surged during the week.

Looking ahead to the coming week, investors will closely observe the market's response to Tesla's Robotaxi initiative, speculating whether this technology will spark a surge in research and development and production of AI-driven transportation.

Furthermore, investors will keep an eye on the US Federal Reserve minutes to gauge the level of confidence in potential rate cuts despite the resilient jobs report.

Headlines for the week:

- Corp Earnings (JPM, WFC, BLK, C)

- US FOMC minutes, US CPI

- China CPI

- SG MAS Announcement, Adv GDP 1Q24, shortened trading week

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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