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Week Ahead: Cautious Upward Momentum as US Government Shuts Down

 


Week Ahead: 6 Oct 2025

Short Term: 
S&P 500 (SPX):  The S&P 500 remains technically bullish, having broken above its recent trading range resistance. However, the index is advancing on diverging momentum (FFI), which raises the risk of a potential false breakout. While further upside is possible, risk management is critical at these elevated levels.

Maintain core exposure but tighten stops or take partial profits near resistance. Traders should wait for follow-through confirmation and guard against a potential false breakout.

Hang Seng Index (HSI): The Hang Seng Index has staged a decisive breakout. Sustained holding above the 27,000 level could see the index trade towards the 28,000–28,500 zone. We remain mindful of the diverging FFI momentum indicator.

Scale in on pullbacks and monitor momentum divergence. A break below 27,000 may trigger a reversal towards 25,750.

Straits Times Index (STI): The STI invalidated last week’s trend channel breakdown and continued its upward move. The next resistance is set near the 4,480–4,500 zone, but the diverging momentum (FFI) warrants tight risk management while riding this move higher. Traders can ride the move with tight stops given diverging momentum.


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

Headlines Next Week:
US: Govt shutdown continues, FOMC minutes, Fed officials speak
China: Markets reopen, Golden Week data
Singapore: MAS MPS & MTI advance 3Q GDP 

Disclaimers apply




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