Skip to main content

Week Ahead: China AI Rally and Delayed US Tariff Continues to Fuel Market Optimism

 






Week Ahead: 17 Feb 2025

Equities rebounded while Treasury yields fell after U.S. President Trump provided a generous lead time until April, allowing countries to negotiate trade tariffs.

China’s AI rally continued, with the Hang Seng Tech Index rising +7.30%. We will continue to ride the Hang Seng Tech momentum amid positive sentiment, next technical target is at 5,940 level. A key focus will be how companies incorporate AI into their products and its impact on their bottom line.

Medium Term:
S&P 500 (SPX): The S&P 500 broke above our 6,100 resistance level. Sustaining above this level could see the index trading towards the 6,380–6,400 zone. If the index falls back below 6,100, the next support levels are at 5,970 and 5,832.

Straits Times Index (STI): STI's technical outlook continues to be positive. Holding above the 3,850 level could see it trading toward the 4,000 level.

Hang Seng Index (HSI): The China A50 Index (grey line) is still trending upward. The Hang Seng Index (candlestick) has reached 22,500, our target and resistance level. The index could consolidate from here. If momentum persists, the next target and resistance level will be 25,000

Long Term:
S&P 500 (SPX) trend remains upward
Hang Seng Index (HSI) trend remains upward
Straits Times Index (STI) trend neutral to upward trend.

Headlines Next Week:
- US Corp Earnings: McDonalds, Coca-Cola, Shopify, Gilead Science, Cisco Sys, Applied Mat
- SG Corp Earnings: UOB, Wilmar, SIA, Genting SP, Seatrium, SATS, Venture Corp, REITs  
- US FOMC minutes, speeches by FED officials, S&P Global PMI
- China LPR Fixing
- SG NODX report, Budget announcement, 

Disclaimers apply

Most Popular

Palantir Technologies Inc PLTR: Technical Rebound at Sight After US Broad Market Stabilises

  Palantir Technologies Inc. (PLTR) USD86.24 Palantir (PLTR) posted a bullish reversal, closing above the 13-day SMA (83.56) with significant volume expansion. This signals potential momentum strength in the near term. First key resistance zone between the 50% and 61.8% Fibonacci retracement levels (USD 99.85 – 105.79), which could present selling pressure. Disclaimers apply

DBS Group Holdings (D05) and Straits Times Index (STI): Technical Change of Momentum

         DBS Group Holdings (D05) and Straits Times Index (STI):  Technical  Change of Momentum  Recent price developments in DBS Group Holdings (SGX: D05) and the Straits Times Index (STI) signal a critical inflection point. Both instruments have breached established ascending trendlines, suggesting a potential reassessment in investor sentiment and market trajectory.  DBS Group Holdings (D05) Price Dynamics:  DBS has decisively broken below its ascending trendline, closing at SGD 44.23, registering a 3.53% decline. The price action underscores weakening upward momentum and raises the probability of an extended correction phase. Key Technical Levels: 38.2% Fibonacci retracement: SGD 41.45 50% Fibonacci retracement: SGD 39.78 61.8% Fibonacci retracement: SGD 38.12 Full retracement: SGD 32.72 Outlook:  The breach beneath the trendline suggests an erosion of bullish conviction. Immediate attention should be on the 38.2% retracement le...

Week Ahead: US Indices Momemtum in Question

    Week Ahead: 10 March 2025 Key event this week was  U.S. indices technically closed below the key 30-week (or 150-day) moving average . For the upward trend to continue, the indices need to reclaim levels above the moving averages. Remaining below the 30-week (or 150-day) moving average could indicate that the upward trend has reversed downward. However, in the short term, we expect a rebound as the indices trade near their respective support levels. Medium Term: S&P 500 (SPX):  The S&P 500 broke below its key upward trendline, which had been established since October 2023. In the longer term, we expect the index to trade sideways or move in a downward direction. In the short term, we anticipate the S&P 500 will find support at the 5,700 level and could rebound to test the 5,860 and then the 5,966 resistance zones. Straits Times Index (STI):  The technical trend remains bullish. We maintain a constructive outlook while staying vigilant for any sig...