[Week #26] June 20th – June 24th Singapore & US Market Outlook


SG SESSION (Mini Uptrend Channel Breached)

The Straits Times Index (STI) recovered strongly by +1.4% (+37.45 points) in today’s session (Monday), erasing majority of the losses during the previous week (-2.1% / -59.55 points).

At the current junction, STI is sitting back to it’s major support level at 2,790 with trading volume at the current junction remaining lacklustre.

The levels to watch for the week are 2,750 support level, with resistance level at 2,880.

2016Jun-S&P 500-800x600

US SESSION (S&P 500 Potential Establishment of Uptrend Channel)

The S&P500 retraces a further -1.2% (-24.85) points during the previous week.

At the current junction, S&P 500 is exhibiting a potential establishment of uptrend channel with Thusday a Bullish Reversal Candlestick Signal at the lower bound of its uptrend channel.

The levels to watch for the week are 2,045 support level, with the break of this support negating the establishment of this uptrend channel.


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-409232


1. British EU referendum (Thursday)

The result will likely be projected early Friday, before the official vote count is announced, based on preliminary vote counts and exit polling.

The June 23 vote could have big implications for the global economy. Analysts say if the vote is to leave, the pound could drop sharply, stocks and commodities would sell off, while safe-havens, like gold and bonds, will see increased demand. A vote to stay may have the opposite effect, causing a snap back in the pound and risk assets and a sell-off in bonds.

Voters in the U.K. appear to be evenly split on whether to support a departure by the U.K. from the European Union. While the “Remain” campaign held as much as a 70-30 lead several months ago, the “Leave,” vote has surged ahead in several prominent polls last week.


2. Fed Chair Yellen testifies (Tuesday & Wednesday)

Little news is expected from the Fed chair, after the U.S. central bank released updated forecasts on the economy and interest rates following last week’s policy meeting.


3. U.S. housing, durable goods data (Wednesday)

The U.S. is to close out the week with a report on May durable goods orders at 12:30GMT, or 8:30AM ET, Friday. The data is expected to show that orders for durable goods slumped 0.5% last month, following a gain of 3.4% in April, while core orders are forecast to inch up 0.2% after rising 0.5% a month earlier.


4. Flash euro zone PMIs for June (Thursday)

The euro zone is to publish preliminary data on manufacturing and service sector activity for June at 08:00GMT, or 4:00AM ET, on Thursday, amid expectations for a modest decline.

Ahead of the euro zone PMI’s, France and Germany will release their own PMI reports at 07:00GMT and 07:30GMT respectively.


5. German business surveys (Friday)

A pair of reports on June German business sentiment will also be in focus. The ZEW Institute will publish its German business climate index at 09:00GMT on Tuesday, while the Ifo research institute will release its own report at 08:00GMT on Friday.


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