STI breaks resistance; we stay bullish

Riding on the "good news is bad news" sentiment now, US stock indices traded mixed overnight, with NASDAQ futures edging higher by only +0.46%. Consumer confidence index edged higher, showing that consumers are still generally optimistic regarding the state of the US economy. Further, last night's US 2-year treasury auction saw a weaker than expected auction causing the latest round of yields to climb higher. These two reasons may lead to further inflationary pressures on the economy. Investors are looking forward to US Fed speakers for comments on possible clues for policy outlook.

Asian markets saw a weaker start at the open of today's session following trickle down inflation-led jitters from the US markets. HSI dipped by -1.15% as the financial and property sector contributed as the biggest drag on the broad index. This follows after the possibility of a US Fed rate cut this year seems less likely following strong data from US. NIKKEI225 dipped by -0.16% as well as traders are more focused on the JPY for now with BoJ's board member Adachi latest statement saying that the central bank stands ready to use monetary policy only if the weakening of the JPY is prolonged. STI opened mixed this morning.

US Equities (4 Hour Chart) - [BEARISH ↘️ *] View unchanged as S&P futures is still consolidating and holding below 5338.50 resistance. We remain bearish for now, expecting price to drop lower towards 5230.50 support. Technical indicators are still advocating for a bearish scenario as well.

CMCSA US

UNH US

US Dollar (4 Hour Chart) - [BEARISH ↘️ *] USD broke below previous supports. We turn bearish for now, expecting USD to hold below 104.890 resistance before shaping an intraday drop towards 104.320 support level. Technical indicators are advocating for a bearish scenario as well.

Brent Crude Oil Futures (4 Hour Chart) - [NEUTRAL] Oil futures pushed higher. We turn neutral for now with a slight bullish bias as oil prices are holding below 84.80 resistance, in line with expanding wedge resistance as well. A candlestick close above 84.80 resistance will open further recovery towards 86.30 resistance next. Technical indicators are mixed for now.

OXY US

XOM US

Gold Futures (4 Hour Chart) - [BULLISH ↗️ **] As expected, Gold futures dropped lower and reached previous target. We turn bullish on Gold, expecting price to push higher towards 2420.00 resistance as long as the market continues to hold above 2366.00 support. Technical indicators are advocating for a bullish scenario as well.

GOLD US

Gold Futures

XAUUSD

HSI Futures (4 Hour Chart) - [BEARISH ↘️ *] View unchanged for now as HSI is showing a drop in progress. We remain short term bearish for now, expecting price to push lower towards 18120 support. Technical indicators are bearish as well.

AIA Group (1299 HK)

SG Equities (4 Hour Chart) - [BULLISH ↗️ *] STI broke above previous resistance. We turn bullish for now, expecting STI to hold above 3318.00 support and shape a further push higher towards 3390.00 resistance. Technical indicators are turning bullish for now.

DBS (D05)

OCBC (O39)

Prepared by:

Isaac Lim CMT, CFTe

This report is provided for informational and general circulation purposes only and should not be construed as an offer, solicitation, or recommendation for the purchase or sale of securities, futures, or other investment products. It does not take into consideration any particular needs of any person. This advertisement has not been reviewed by the Monetary Authority of Singapore.