Week Ahead: 22 Dec 2025
Is Christmas Rally Coming to Town?
Short Term:
S&P 500 (SPX): Range-bounded movement continues
The index continues to trade within the well-defined consolidation band between 6,633 and 6,925. The FFI indicator shows improving but uneven flow, consistent with a non-trending environment. Thus, Christmas Rally remains somewhat mixed.
Tactical Trade:
Tactical longs are preferred on dips above 6,700, targeting a retest of 6,925, with stops placed below 6,633.
Directional Probability (AI-assisted):
Bullish (break above 6,925): 30%
Rangebound (6,633–6,925): 50%
Bearish (break below 6,633): 20%
Hang Seng Index (HSI): Range-bounded movement continues
Like S&P 500, HSI continues to consolidate between 25,150 and 27,383, with recent price action stabilising around the mid-range pivot near 25,690. While the latest rebound has provided short-term relief, upside follow-through remains limited. The FFI indicator showed improvement, remains uneven, consistent with a non-trending environment.
Unless a strong macro catalyst emerges, the index is likely to continue oscillating within the current range.
Tactical Trade:
Short-term traders may consider tactical dip-buys near 25,150–25,300, targeting a rebound toward 25,690–26,000, with tight stops below 25,150.
Directional Probability (AI-assisted):
Bullish (toward 27,383): 28%
Rangebound (25,150–26,893): 52%
Bearish (below 25,150): 20%
Straits Times Index (STI): Cautious Bullish view toward 4,690
The STI has broken above the 4,575 resistance and continues to hold above this level. The FFI indicator remains supportive, though not aggressive, consistent with a measured rather than impulsive advance.
As long as the index sustains above 4,575, the upside bias remains intact.
Tactical Trade:
Short-term traders can look for buy-on-pullback opportunities toward 4,560–4,575, targeting 4,690, with stops placed below 4,520 to guard against a failed breakout.
Directional Probability (AI-assisted):
Bullish (toward 4,690): 55%
Rangebound (4,460–4,575): 32%
Bearish (toward 4,372): 13%
Long Term:
S&P 500 (SPX) Upward Trend
Hang Seng Index (HSI) Upward Trend
Straits Times Index (STI) Uptrend Trend
Headlines Next Week:
US: 2nd est 3Q25 GDP, Ind Prod
China: National People’s Congress Standing Committee meeting
Disclaimers apply