Week Ahead: 5 Jan 2026
S&P 500 (SPX): Expecting Directional Move as Trading Range Narrows Near Resistance
The S&P 500 continues to trade within a trading range between 6,550.78 and 6,920.34. Price repeatedly testing the upper boundary near 6,920, suggesting active supply remains at resistance.
The FFI indicator is mixed with trading range narrows, reflecting both accumulation and selling pressure in play. This increases the probability of a directional move.
Tactical Trade: Tactical longs are preferred on pullbacks
With the index still range-bound, tactical longs are preferred on pullbacks toward 6,650–6,700, targeting a retest of 6,920, with stops placed below 6,550.78 to manage downside risk.
Directional Probability (AI-Assisted):
Bullish (break above 6,920.34): 36%
Rangebound (6,550.78–6,920.34): 48%
Bearish (break below 6,550.78): 16%
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 25,800-26,000 zone, targeting a rebound towards 26,893-27,383 zone, with tight stops below 25,150.
Directional Probability (AI-Assisted):
Bullish (toward 27,383): 24%
Rangebound (25,150–26,893): 54%
Bearish (below 25,150): 22%
Straits Times Index (STI): Bullish continuation toward 4,690
The STI continues to trade towards 4,690 with sustained upside momentum. The FFI indicator shows steady positive flow, but watch for supply when index nears 4,690 zone.
Tactical Trade: Long trades towards 4,690
Short-term traders can look for breakout trades on single stocks or buy-on-dip near 4,600–4,630, targeting 4,690, with stops placed below 4,520.
Directional Probability (AI-Assisted):
Bullish (towards 4,690): 60%
Rangebound (4,460–4,575): 30%
Bearish (towards 4,372): 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: ISM PMI, Employment, factory orders, Fed speakers (regional), CES tech expo.
China: PMI, CPI & PPI
Singapore: 4Q25 GDP, PMI, retail sales
Disclaimers apply