Weekly Market Outlook

Thoughts on the Week Ahead:

Week of July 29, 2024

Equities markets experienced volatility over the previous week before rebounding on Friday evening. Both the US S&P 500 and Singapore's STI are trading near their technical support levels of 5,400 and 3,400, respectively, while the HK Hang Seng Index continued its downward trend.

The market has largely priced in the US Federal Reserve holding interest rates steady at current levels, with investors awaits Chair Jerome Powell's speech for clues on inflation and potential rate cut expectations.

Bond prices remained strong, and we maintain a cautious outlook for the week ahead until we observe a change in momentum for the equities market.

Headlines for the week:

- US Corp Earnings (MSFT, META, AAPL, and AMZN, SIA, UOB, Keppel, OCBC, Seatrium)

- US FOMC meeting, NFP report, ISM Mfg PMI

- China PMI,

- SG PMI, Unemployment

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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