Turns bearish on S&P 500, expects price to drop lower towards 5230.50 support

US stock indices fell overnight as the markets took on a more risk-off sentiment following better than expected economic data was released yesterday. Markets are now in a "good news is bad news" mode after unemployment claims surprised with lower than expected data. At the same time, services and manufacturing PMI also ticked higher, showing a resilient US economy. S&P and NASDAQ futures fell by -0.83% and -0.69% respectively as the data signaled that the US Fed could possibly further delay any rate cuts.

Asian markets sold off this morning as well, with HSI dropping the most by -1.30% after investors reportedly started allocating more of their capital to higher interest bearing products such as bonds. This comes after Chinese policymakers announced their efforts to boost risk appetite of investors. Further, Hong kong-based hedge fund behemoth Segantii, is reported to shut down due to an ongoing lawsuit regarding insider trading. This news further unsettled the markets as Segantti is one of the biggest hedge fund that manages block trades for the stock markets. NIKKEI225 fell by -1.16% not just mirroring the move in the US markets but also as data show that inflation has eased for a second month. This casts doubts among the investors as to whether the BoJ will continue to raise interest rates further. The STI dipped by -0.49% as REITs contributed to the weakness.

US Equities (4 Hour Chart) - [BEARISH ↘ *] S&P futures broke below previous supports. We turn bearish for now, expecting price to drop lower towards 5230.50 support. Technical indicators are advocating for a bearish scenario as well.

CMCSA US

UNH US

US Dollar (4 Hour Chart) - [BULLISH ↗ **] As expected, USD pushed higher. We maintain our bullish view for now. As long as USD continues to hold above 104.840 support, a further push up towards 105.350 resistance is expected. Technical indicators remain bullish, advocating for further upside.

Brent Crude Oil Futures (4 Hour Chart) - [NEUTRAL] Oil futures spiked higher, reaching our target before pulling back quickly. We turn neutral for now expecting price to trade within a zone between 82.70 resistance and 81.00 support. Technical indicators are mixed for now. Only a candlestick close above 82.70 resistance will open further rise towards next resistance at 84.00.

OXY US

XOM US

Gold Futures (4 Hour Chart) - [BEARISH ↘ *] As expected, Gold futures dropped lower and reached previous target. We maintain our bearish directional bias, expecting price to drop lower towards 2312.00 support. Technical indicators remain bearish as well.

GOLD US

XAUUSD

HSI Futures (4 Hour Chart) - [BEARISH ↘ *] As expected, HSI futures dropped lower and reached our previous target. We maintain our bearish directional bias, expecting price to pull lower towards 18120 support. Technical indicators remain bearish, calling for a further drop as well.

Tencent (700 HK)

Orient Overseas (316 HK)

SG Equities (4 Hour Chart) - [BEARISH ↘ *] View unchanged as STI is holding and reacting below 3325.00 resistance. We maintain our bearish directional bias, expecting price to still drop lower towards 3248.00 support. Technical indicators remain bearish as well.

DBS (D05)

OCBC (O39)

Prepared by:

Isaac Lim CMT, CFTe