Week Ahead: Markets Expect to Turn Cautious with U.S. Presidential Election Approaching

Week Ahead, 28 Oct 2024

As demand for Labubu soars, markets are becoming more cautious in anticipation of potential surprises, with the U.S. Presidential Election approaching.

Macro News:

- Israel has launched strikes on targets across Iran, and investors are closely monitoring the situation for any further escalation, particularly its impact on oil prices.

- Strong U.S. economic data continues to provide upward support on long-term interest rates, putting ETFs like TLT under pressure.

Market Trends:

Medium Term:

- The S&P 500 is trading around our 5,900 technical target level. We remain cautious for the week ahead and are closely monitoring directional movements.

- The STI is trading within the 3,570-3,640 range. Likewise, we are keeping an eye on potential directional shifts.

- The HSI remains at its first support level of 20,600 (Fibonacci 38.2%).

Long Term:

- S&P 500 remains upward

- Hang Seng Index (HSI) remains upward

- Straits Times Index (STI) neutral to upward trend.

Headlines Next Week:

- US Corp Earnings (MSFT, GOOGL, V, MA, KO, AAPL, AMZN, MA, XOM, and ABBV)

- SG Corp Earnings (Wilmar, Mapletree Ind Tr)

- US Adv Est 3Q24 GDP, SDM Mgf PMI, PCE

- China s Sept PMI

- SG Sept CPI

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

Market Technician

Search This Blog