SG SESSION (Mini Uptrend Channel Intact)
The Straits Times Index (STI) had a lacklustre upside of 0.2% (+6.72 points), extending its 3 consecutive weeks of rally.
STI is currently supported by the Window Support Range highlighted over the previous three weeks after the confirmation of on the Bullish Reversal Candlestick Pattern (Bullish Doji Star). It has also beached the resistance at 2,800 level, forming a higher high within this mini uptrend channel. However, do note that the breached of this resistance level is met with extremely unconvincing illiquid transaction volume. It is likely for STI to whipsaw along the 2,800 range over the next few days of trading session.
The levels to watch for the week are 2,705 – 2,600 window support range level, and next resistance to watch for is at 2,850 major resistance level.
US SESSION (S&P 500 Testing 2016 High)
The S&P500 endured a non movement of 0% (+0.07 points) during the week.
As highlighted over the past three weeks, S&P 500 rebounded with a Bullish Reversal Candlestick Pattern (Hammer) signal on 19th May (Thursday). At the current junction, S&P 500 is testing its year high at 2,110 level (major resistance). MACD and RSI are reflecting a bearish divergence against the recent rally, reflecting a significant weakness that may likely to see more downside ahead for the coming week.
The levels to watch for the week are 2,110 major resistance level, along with support at 2,075 resistance turned support level.
5 things to watch on the economic calendar this week (an extract and summary from http://www.investing.com/news/economy-news/5-things-to-watch-on-the-economic-calendar-this-week-406565)
1. Fed Chair Yellen speaks (Monday)
Her speech could take on extra importance following last week’s dismal nonfarm payrollsreport.
2. U.S. Michigan consumer sentiment (Friday)
Market players have been paying close attention to U.S. consumer sentiment numbers in recent months to gauge the health of the economy.
3. Chinese trade data (Wednesday)
The report is expected to show that the country’s trade surplus widened to $58.0 billion last month from $45.6 billion in April.
Chinese exports for May are forecast to have dropped 3.6% from a year earlier, following a decline of 1.8% a month ago, while imports are expected to slump 6.0%, after falling 10.9% in April.
On Thursday, China is to publish reports on May consumer and producer price inflation. The data is expected to show that consumer prices rose 2.3% last month, while producer prices are forecast to fall by 3.3%.
4. Reserve Bank of Australia rate decision (Tuesday)
Most economists expect no policy change, after the central bank surprised with a 25 basis point rate cut at its previous meeting to a historic low of 1.75% in an effort to boost inflation and spur economic activity.
5. Reserve Bank of New Zealand monetary policy update (Wednesday)
Market experts are split on whether the RBNZ will move on rates, with some predicting a 25 basis point cut to a record low 2.0%, while others expect no change.