Week Ahead: Earnings Optimism Driving Recent Stock Rebound

 




Week Ahead 6 - 10 April

1Q26 earnings optimism is driving the recent equity market rally. According to FactSet, the estimated year-over-year (YoY) earnings growth rate for the S&P 500 is 13.2% for Q1 2026.  

Technicals suggest the rebound will continue into this week.

However, our view remains that the current rebound is likely short-live, as volume-based momentum remains largely negative.


Headlines:
US: Mar NFP report, Feb PCE & Mar CPI, FOMC minutes, Mar PMI
China: Mar CPI, Mar PPI, Econ Data
Singapore: Mar PMI, Feb retail sales


S&P 500 (SPX):
The S&P 500 has reclaimed the 6,550 support level, repositioning within the established 6,550 to 7,002 trading range. With fund flows improving and the index maintaining above 6,550, near-term consolidation toward the 6,800 zone appears probable. 

Tactical Trade: 
Neutral

Long Term Direction:
Neutral 

Directional Probability:
Bullish (break above 7,002): 5%
Rangebound (6,550–7,002): 45%
Bearish (Towards 6,099): 50%


Hang Seng Index (HSI)
HSI rebounded back at previous 25,150 support level. FFI bearish eased but stayed negative. Index could retest 25,800 to 26,100 resistance zone.

Tactical Trade: 
Neutral

Long Term Direction:
Neutral

Directional Probability
Bullish (Above 27,383): 5%
Rangebound (25,150–27,383): 35% 
Bearish (Towards 24,031): 60%


Straits Times Index (STI)
Index nears resistance zone. Fund Flow Indicator remains mix. Expect trading range of 4,697 to 5,041. Monitoring supply/demand for directional confirmation.

Tactical Trade: 
Neutral

Long Term Direction:
Upward Trend (Cautious)

Directional Probability:
Bullish (Break above 5,041): 15%
Rangebound (4,697 - 5,041): 60%
Bearish (below 4,697): 25%


Disclaimers apply