The Fed has risen interest rates by 0.25% and further mention that one more rate hike for the year is on the cards and probably no rate cute. With that market volatility set in but as the week came to a close, markets started settling down. Now with fed decision out of the way. What will market be looking forward to and how will the market perform for the week?
Traders will be hoping for some form of stability to return to markets roiled by bank failures in the coming week as they weigh the ongoing fallout from the forced UBS-Credit Suisse tie-up. Upcoming Core PCE Date which is the Fed preferred data could bring some volatility towards the end of the week.
China’s PMI data on Friday will be closely watched as market watchers try to gauge the strength of the recovery in the world’s second largest economy in the wake of the lifting of pandemic restrictions.
Now let’s take a look on the technical front for the various markets.
Nasdaq 100
Nasdaq 100 considered strong as its above the 200ema and what’s interesting is that the 50ema is looking to cross the 200ema. A bullish sign if this happens! Nasdaq remains stronger as traders switch from banking stocks to tech stock and pile in on tech stocks as the 10 year fell. Also, traders look to move in on the recent hot theme on artificial intelligence. For the week ahead, the key resistance that Nasdaq has to take out would be around 12913. Market has tested that area recently but haven’t been able to break it. As April draws near, a seasonally better month we could see market gathering pace if this banking crisis don’t fallout further. Looking for a bullish break through for the week.
A break below 12373 would be a short term bearish signal for the Nasdaq100.
S&P500
S&P500 slightly weaker as it consist of banking stocks in the index which is dragging the index down. Currently at some congestion which is the horizontal line, downtrend line and the moving average. A break above the 4000 psychological could see S&P500 move higher to the 4100 level. We remain bullish for this week as market tries to stabilize and absorb the bad news around. Support at 3919 and a break below that might signal more downside to 3811.
HSI
Something interest that we are seeing on the HSI is that its up 3 days in a row, a rare sight for the last few months. Gaining some momentum on the upside BUT currently facing a few resistance as drawn from the above. A good break above 20,120 could see the HSI push up to 20700 if not we could see HSI consolidate for awhile. Optimistic about a break above this resistance! Support at 19733.
STI
STI which is almost 40% made up of our three local banks largely takes direction from the movement from the banks. Despite the banking crisis we do see our banks hold up pretty well. As our banks are on the safer side, investors are still confident in our banks. For this week, with an increase in interest rates, we might still see a move up after it cross 3225. A move towards 3262 is possible for this week as market tries to find its footing.
If you got any questions as always feel free to drop us a message.
Yours
Humbly
Kelwin & Roy
