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Week Ahead: US–China Meeting in Stockholm a Key Market Catalyst. Technicals Remain Bullish but Cautious

 


Week Ahead: 28 July 2025

Several market-moving events are on the radar this week. Key catalysts include the upcoming U.S.–China meeting in Stockholm, earnings from the Magnificent Seven, and the U.S. FOMC policy statement. Markets broadly expect the Fed to maintain interest rates at current levels.

Short Term: 
S&P 500 (SPX): US market is trading above the 6,300 level. While we maintain an upside target of 6,600, we remain cautious as the volume-based indicator, FFI, is showing divergence from the prevailing trend. Key levels to monitor are resistance at 6,600 and support at 6,300.

Investors remain invested, as the long-term trend remains intact. Traders could long on pullbacks near 6,300 with stop slightly below (e.g., 6,250); target 6,600.

Hang Seng Index (HSI): Index has broken above the 25,000 psychological level. We expect the index to trade towards the 26,000 level, which also corresponds to the 2.618 Fibonacci extension. Alternatively, the index may consolidate around current levels, with downside support seen between 24,800 and 25,000.

Traders could long on any pullback to 25,000 with stop at 24,750, targeting 26,000.

Straits Times Index (STI): STI has reached our 4,250 target zone. We anticipate the index may consolidate around current levels. Immediate support is at 4,200, with the next potential upside target at the 4,500 zone. Buy are expected to long on dips near 4,200, sell near 4,300–4,350; watch for breakout attempt above 4,300 as signal of strength.

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

Headlines Next Week:
US Corp Earnings: Microsoft, Apple, Amazon, Meta, Visa, Exxon Mobil, Mastercard, UnitedHealth, Procter & Gamble
SG Corp Earnings: SIA, OCBC, Keppel Ltd, Mapletree Industrial, Raffles Medical, CapLand China Trust, ESR REIT, NetLink NBN.
US: FOMC, PCE, 2Q GDP, Jul jobs report, ISM mfg, tariff deadline
China: Jul PMI, trade talks with US in Stockholm.
Singapore: MAS MPS, Jul PMI

Disclaimers apply







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