Trader’s Edge wrote a post · May 8 14:37

S&P 500 extends winning streak for 4th straight day, albeit marginally higher

8th May 2024 (Wed) Daily Market Outlook

Summary - What Is Happening In The Markets

US markets took a breather last night after a strong 3-consecutive days rally that started last Thursday. Price action was sluggish due to the lack of any significant news. S&P500 futures closed marginally higher by +0.13% while NASDAQ futures closed flat. Traders now turn their attention to the upcoming US 10-year Note auction that would give the markets an indication as to the medium term health of the US economy.

Asian markets opened to a mix start this morning with the focus mainly on the JPY story. NIKKEI225 dropped by -1.00% this morning due to negative sentiments arising from the weakening of the JPY. The JPY weakened further ahead of the 10-year Japanese Government Bond (JGB) auction. BoJ's Governor Ueda tried to calm the markets earlier this morning by pointing out that the recent moves on the JPY would not have a big impact on the inflationary trend. Singapore's STI dipped by -0.81% led by weakness in the banking sector. HSI bucked the trend in Asia by climbing +0.25% this morning as finance and the IT sectors saw broad gains.

US Market Key Charts (S&P, US Dollar, Brent Crude Oil, Gold)

S&P 500 extends winning streak for 4th straight day, albeit marginally higher

US Equities (4 Hour Chart) - [BEARISH ↘️ *] View unchanged. We maintain our bearish with low conviction stance for now. Price is still holding below 5250.00 resistance and is expected to do a pullback lower towards 5150.00 support. 34 period EMA is in line with 5150.00 support and shows price is over extended in the short term.

Alternatively: A 4 hour candlestick close above 5250.00 resistance will open further recovery towards next resistance at 5300.00.

Stocks To Watch:

AAPL US

AMZN US

US Dollar (4 Hour Chart) - [BEARISH ↘️ *] View unchanged as we maintain our bearish stance for now. USD is still holding below 105.550 resistance before shaping an expected drop towards 104.520 support. Technical indicators are still advocating for a bearish scenario as well.

Alternatively: A 4 hour candlestick close above 105.550 resistance will open further rise towards next resistance at 106.450.

Brent Crude Oil Futures (4 Hour Chart) - [BULLISH ↗️ *] View unchanged as Oil futures is still holding and consolidating above 82.80 support. We maintain our bullish bias with low conviction. A bounce reaction above 82.80 support towards 85.650 resistance is still expected. Technical indicators remain mixed but RSI is reacting above support and is still showing a possible bullish divergence.

Alternatively: A candlestick close below 82.80 support will open a drop towards next support at 81.00.

Stocks To Watch:

OXY US

XOM US

Gold Futures (4 Hour Chart) - [BEARISH ↘️ *] Drop in progress as Gold futures drifted lower. We maintain our bearish bias with low conviction, expecting price to pullback lower towards 2295.00 support. RSI indicator is toppish and holding below resistance where price dropped lower in the past.

Alternatively: A candlestick close above 2340.00 resistance will open short term recovery towards 2365.00 resistance next.

Stocks To Watch:

GOLD US

HSI Index Futures

HSI Futures (4 Hour Chart) - [BEARISH ↘️ *] View unchanged as HSI futures still holding and consolidating below 18600 resistance. We maintain our bearish bias with low conviction, expecting price to do a pullback lower towards 17835 support. Technical indicators are mixed. Price is holding above long term 55 period EMA, while MACD is now turning lower, showing a build up in bearish momentum.

Alternatively: A candlestick close above 18600 resistance will further upside towards 19100 resistance next.

SG Market - STI

SG Equities (4 Hour Chart) - [NEUTRAL] STI dropped lower and is challenging previous support. We turn neutral for now with no clear directional bias. A candlestick close above 3325.00 resistance will open further rise towards next resistance at 3390.00. Technical indicators are mixed for now. MACD showing a build up in bearish momentum.

Alternatively: A candlestick close below 3248.00 support will open a pullback towards next support at 3195.00.

Stocks To Watch:

DBS (D05)

Seatrium (S51)

Economic Calendar – Events to Watch

US 10 year Note Auction - 9th May (Thursday)