S&P500

The Week Ahead Sept 2023 – [STI, HSI, NASDAQ & S&P]

Kelwin & Roy STI , , , , , ,
24th September, 2023, 11:02 PM

The S&P500 and Nasdaq both posted worst week since March after Fed meeting. As always, we warn not to take up too much positions before any major events. Fed didn’t hike rate as anticipated BUT it always mentioned that it won’t be cutting rates that aggressively in 2024 which saw market selling off. The 10 year yield also started moving up which puts more pressure on the markets especially on Nasdaq.

For this week, there are some critical levels to watch out for especially for the US markets.

S&P500

The S&P500 currently sitting on a first level of support of  4320 could see it move down lower during the week. We could see it test the 4264 level which coincides with the 200ema and the uptrend support line too. This could be the first level to scale in if you have missed out on the year’s rally. This level would represent about a 7% pullback and its well within a healthy market pullback. In fact, a 10% pullback shouldn’t be seen as a surprise given how much markets have ran up too. So get your ammo ready!

Nasdaq100

Nasdaq, the index that is more sensitive towards interest rates movement has already seen about an 8% pullback since the high. But don’t forget this is the market that has risen a whooping 45% for the year too! so an 8% pullback once again shouldn’t be too much to ask for. For the week, we could also see Nasdaq continue to drift lower. The 200ema or 14078 level could be a good point of support. Waiting around there to add more positions into the Nasdaq.

STI

The Straits Times Index pulled back more than expected as the negative sentiments flowed through Asia after Fed’s meeting. STI has found some support at the 3186 level but this might not be able to hold that well. For the week, we could still see more weakness coming in as STI tries to defend the 3180 level. The next critical support would be at 3120.

HSI

The Hang Seng Index saw a strong come back of about 2.2% on Friday as funds put US$1 Billion back into China markets. Investors picked up badly beaten up stocks like Tencent which came to its $300 psychological level. HSI could push higher to 18500 level this week but take note that whenever HSI rallies, it tends to fizzle out. So don’t be overly optimistic on short term rally and be quick on securing profits. The support of 17570 had been tested and is proving to be a credible support for now. Once this holds well we might really see the bottoming for the Hang Seng Index. Fingers CROSSED!

Yours

Humbly

Kelwin & Roy

The Week Ahead March 2023 – [STI, HSI, NASDAQ & S&P]

Kelwin & Roy Stock Market , , , , , ,
26th March, 2023, 9:47 PM

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