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Week Ahead: Markets Trade Sideways as Investors Digest U.S.-China Trade Talks and Middle East Tensions


bMiddle East tensions are expected to continue dominating headlines next week, while the U.S. FOMC rate decision will also be closely watched.

Medium Term: 
S&P 500 (SPX): The S&P 500 could hover in the near term amid heightened Middle East tensions. Key support levels to monitor are 5,900, followed by 5,780. Consider short-term range strategies between 5,900 and 6,030, with tight stops below 5,780. 

Hang Seng Index (HSI): The Hang Seng Index (HSI) tested the 24,200 resistance level. In the absence of strong demand signals, the index is expected to trade sideways in the week ahead. We will continue to monitor for demand or supply signals to confirm the next trend direction. Traders could take up LONG trades near support zone. 

Straits Times Index (STI): The Straits Times Index (STI) is testing its 3,900 support level. We expect a sideways trend in the upcoming week, while closely monitoring demand and supply price action for confirmation of the next directional move. If Sign of Strengths are observed, traders could resume LONG trades.

Long Term:
S&P 500 (SPX) Upward Trend
Hang Seng Index (HSI) Upward Trend
Straits Times Index (STI) Uptrend Trend

Headlines Next Week:
US: FOMC rate decision, May Retail sales, Ind Prod
China: May Ind Prod, Retail sales, LPR fixings
Singapore: May NODX

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