Daily Market Outlook - 20 March

Summary - What Is Happening In The Markets

US equities index futures pushed higher overnight as traders started pricing in the FOMC interest rate decision ahead of their Thursday's meeting. It is widely expected that the US Fed would again keep rates unchanged. S&P futures climbed by +0.48% to retest its previous highs, whilst NASDAQ futures added +0.25% as tech megacaps rebounded during yesterday's session.

Asian stocks mirrored the move in the US markets and opened higher this morning. STI added +0.12% as REITs and Retail sector led the rise. HSI opened marginally higher with +0.03% taking a breather from the recent string of disappointing corporate results along with China Evagrande's property fallout. Japanese markets are closed today for a holiday.

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

US Equities (4 Hour Chart) - [Neutral] S&P pushed higher and surpassed previous resistance. We turn neutral for now with a slight bullish bias. A candlestick close above 5253.50 will open further rise towards 5300.00 resistance next. Technical indicators are mixed for now. Price is holding above long term MA while RSI is toppish below resistance.

Alternatively: A 4 hour candlestick close below 5200.00 support will open a drop towards next support at 5168.00

US Dollar (4 Hour Chart) - [Bearish ↘ *] As expected, DXY strengthened and pushed higher, reaching the previous target. We now turn bearish with low conviction, expecting price to hold below 104.020 resistance before shaping an intraday day drop towards 103.500 support. Technical indicators while bullish, are over-extended for now.

Alternatively: A 4 hour candlestick close above 104.020 will open further rise towards 104.290 resistance next.

Brent Crude Oil Futures (4 Hour Chart) - [Bullish ↗ **] View unchanged as oil price shows a rise in progress. We maintain our bullish bias with good conviction. A pause above 86.60 support is expected before a fresh push higher towards 88.50 resistance. Technical indicators are advocating for a bullish scenario as well.

Alternatively: A candlestick close below 86.60 support will open a short term setback towards next support at 85.75.

Gold Futures (4 Hour Chart) - [Neutral] View unchanged as Gold price continues to consolidate. We maintain our neutral bias for now as indicators are still mixed. MACD is flat, showing no real strength to momentum. A candlestick close above 2177.00 resistance will open further rise towards 2205.00 resistance next.

Alternatively: A candlestick close below 2150.00 will open a deeper drop towards 2134.00 support next.

SG Market - STI

SG Equities (4 Hour Chart) - [Bullish ↗ *] View unchanged with STI drifting higher above ascending trendline support at 3160.50. We maintain our bullish outlook for now, expecting price to bounce towards 3199.00 resistance. Technical indicators are advocating for a bullish scenario and MACD indicator is showing that price is within bullish environment.

Alternatively: A candlestick close below 3160.50 support will open a drop towards next support at 3142.00.

Economic Calendar – Events to Watch

US Fed FOMC Meeting & Interest Rate Decision - 20th Mar (Thursday)**