Week Ahead: Equities Facing Earnings Support vs. Stagflation Headwinds

 


Week Ahead 4 - 8 May 2026

Headlines:
US Corp Earnings: Palantir, AMD, Pfizer, McDonald's, PayPal, Disney, Uber
SG Corp Earnings: UOB, OCBC
US: ISM data, Employment & NFP, US Fed officials speak
China: Labour Day holidays, PMI, trade data
Singapore: PMI, Retail sales

S&P 500 (SPX): 
The index pushed higher toward 7,455 but FFI indicator decelerated for the third consecutive week. Remains bullish but cautious.

Tactical Trade:
Long on dips toward 7,003 - 7,100. Partial profit-taking at 7,300–7,350

Long Term Direction: 
Upward Trend, LT Cycle indicator remains positive

Directional Probability: 
% lowered as FFI remained positive but weakened for past 3 weeks.

Bullish (Towards 7,455): 40%
Back to Range (6,550–7,002): 50%
Bearish (Towards 6,099): 10%

Hang Seng Index (HSI): 
Index testing gap support and FFI reverting to neutral. Range compression between 25,600 and 26,500 signals directional move.

Tactical Trade: 
Neutral, as trading range is compressed

Long Term Direction: 
Upward Trend, LT Cycle indicator remains positive

Directional Probability: 
Watching for directional signal

Bullish (Break Above 27,383): 20% 
Rangebound (25,150–27,383): 60% 
Bearish (Break below 25,150): 20%

Straits Times Index (STI):
Maintain a cautious stance on the index. Despite the recent rebound from a two-week correction, the deterioration in the FFI signals waning momentum. We expect the index to trade below the 5,041 resistance level this week.

Tactical Trade:
Neutral, FFI turned negative

Long Term Direction:
Upward Trend, LT Cycle indicator remains positive

Directional Probability:
Expecting range bound action with FFI turning negative.

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



Disclaimers Apply