Week Ahead: 12 Jan 2026
Short Term:
S&P 500 (SPX): Breakout observed, momentum expands
The S&P 500 closed above the upper boundary of its trading range. The breakout follows multiple prior tests of resistance, suggesting that overhead supply has mostly been absorbed.
The FFI indicator, have also turned positive after a period of mixed readings, suggesting momentum is gaining strength. A sustained hold above 6,920.34, will see index trading towards the next upside objective at the measured move target near 7,289.90.
Tactical Trade: Tactical longs are preferred
Maintain or add to long positions on successful holding above 6,920.34. Initial upside target at 7,100, followed by 7,289.90.
Directional Probability (AI-Assisted):
Bullish (break above 6,920.34): 55%
Rangebound (6,550.78–6,920.34): 35%
Bearish (break below 6,550.78): 10%
Hang Seng Index (HSI): Trading Range Stabilising as Supply Eases
The HSI remains within its broad consolidation range between 25,150 and 27,383, with recent price action stabilising around the mid-range pivot near 25,690.
The index has rebounded sharply in the latest session while the FFI indicator continues to show improvement from negative levels, could suggest supply exhaustion. A sustained momentum is required for index to toward the upper boundary at 27,383.
Tactical Trade: Tactical dip-buys preferred
Tactical dip-buys preferred, near 26,000-26,100 zone, targeting a rebound towards 26,893-27,383 zone, with stop below 25,150.
Directional Probability (AI-Assisted):
Bullish (toward 27,383): 40%
Rangebound (25,150–26,893): 40%
Bearish (below 25,150): 22%
Straits Times Index (STI): Bullish continuation with momentum expansion
Index is Price is holding well while marking higher. The FFI indicator expanded strongly. As long as price holds above 4,576, the next upside objective near 4,808.
Tactical Trade: Long trades preferred, targeting 4,808
Traders can look for buy opportunities toward 4,650–4,690, targeting 4,808, with stops placed below 4,576.
Directional Probability (AI-Assisted):
Bullish (towards 4,808): 65%
Rangebound (4,576–4,692): 25%
Bearish (below 4,460): 10%
Long Term:
S&P 500 (SPX) Upward Trend
Hang Seng Index (HSI) Upward Trend
Straits Times Index (STI) Uptrend Trend
Headlines Next Week:
US Earnings: JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, Goldman Sachs, and Morgan Stanley.
US: Supreme Court ruling on IEEPA tariffs, Dec CPI, PPI, retail sales, ind prod, Fed speakers & Beige Book.
China: Dec trade, CPI & PPI
Singapore: Dec NODX
Disclaimers apply