Wishing everyone a Prosperous, Happy and Healthy Lunar New Year.
Week Ahead: 16 Jan 2026
Sentiment remains cautious as we enter the Year of the Horse. In the US, corporate earnings are resilient, but the employment outlook and consumer sentiment are mixed, with AI disruption and rising tariffs forming a challenging backdrop.
In China, overall fundamental data has yet to show meaningful improvement. However, the consumer sector stands out as a bright spot, supported by the central government’s push to stimulate domestic spending.
In Singapore, an improved 2026 export outlook is supportive of the STI. However, potential net interest margin (NIM) compression in the banking sector could pose a headwind.
Overall, equity allocations should remain nimble, with a disciplined approach to position sizing.
S&P 500 (SPX):
Back within 6,550 - 6,920 trading range. FFI is mixed
Tactical Trade:
Investors to use rallies to reduce exposure. Selective LONG trades in Utility sector and consumer staples sectors.
Long Term Direction:
Upward trend (Cautious)
Directional Probability:
Bullish (break above 7,002): 20%
Rangebound (6,550–7,002): 50%
Bearish (break below 6,550): 30%
Long Term:
S&P 500 (SPX) Upward Trend
Hang Seng Index (HSI) Upward Trend
Straits Times Index (STI) Uptrend Trend
Hang Seng Index (HSI):
Range bound expectation. FFI indicator is mixed. Index reluctant to break above 27,383.
Tactical Trade:
Selective Long trades preferred. Positive sizing to be conservative.
Long Term Direction:
Upward trend
Directional Probability:
Bullish (toward 28,500): 20%
Rangebound (26,265–27,383): 50%
Bearish (25,150-26,265): 30%
Straits Times Index (STI):
Range Bound momentum expected. FFI negative divergence observed.
Tactical Trade:
Long trades near 4,854 zone preferred.
Long Term Direction:
Upward Trend
Directional Probability:
Bullish (Break above 5,021): 25%
Rangebound (4,854 - 5,021): 50%
Bearish (Break below 4,854): 25%
Headlines Next Week:
US Earnings: Walmart, Newmont
US: FOMC minutes, 4Q GDP, Dec PCE & core PCE, Ind prod, S&P Global PMI
Singapore: Jan NODX
Disclaimers apply