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S&P 500 Technically Under Pressure

 



S&P 500 Technically Under Pressure
As shared during our previous weekly update, US FOMC announce was a likely trigger of a directional move on the markets after weeks of consolidation. The financial markets reacted negatively to the Fed's talk of tightening and the expectation of prolonged high interest rates in the USA. Soaring oil prices have also added to inflationary pressures.

Following a week of central bank announcements, the upcoming week will see a shift in attention towards key macroeconomic data. Markets will be focusing on the Personal Consumption Expenditures (PCE) Price Index, US FED’s crucial indicator of inflation trend. Data on personal income and spending will provide insights into consumer behavior and economic health.

From a technical perspective, the S&P 500 has recently exhibited a gap followed by a subsequent downward movement, which is generally considered unfavorable for the markets. This downward momentum may potentially lead to a mid term downtrend move.

In our strategic approach to trading and portfolio management, we will closely monitor our medium-term outlook for the US markets. And during this time, we will lookout for both bullish (LONG) and bearish (SHORT) trading opportunities for the upcoming week.

Lastly, our focus in the Greater China (Hong Kong and China) markets, remains on identifying long investment and trading prospects.

Headlines for Week Ahead:
US PCE Data
US FOMC members speaking at various events
China Aug PMI
SG Sept CPI
SG Ind Prod
US Corp Earnings (COST, MU, NKE)

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