Asian equities rebounded on Monday due to moderated geopolitical tensions and Hurricane Irma making landfall in Florida in a much weaker-than-expected state. 

The Nikkei 225 and Hang Seng indices soared 1.4% and 1.0% respectively as the relief sentiment spread out across Asia. US and European equity indices soared over 1% overnight as the market focus shifted to Apple’s new iPhone launch. Apple’s share price jumped 1.8% in anticipation of new products and features to drive revenue growth in the quarters to come. 

The S&P 500 index challenged the key resistance level of 2,484 points (161.8%) yesterday evening. A meaningful break through above this level will leave room for further upside toward the next major resistance level of 2,600 points. Bloomberg’s bottom-up analyst forecasts suggest that the index will rise another 6% to 2,630 in the next 12 months.  

Singapore’s Straits Times Index, however, eased earlier gains and closed marginally lower on Monday. Trading volume in the Singapore exchange remained subdued, indicating a lack of interest in the local stock market. The Straits Times Index has entered into technical consolidation after it hit a recent high of 3,354 points in mid-August, with its immediate support and resistance levels at 3,200 and 3,272 respectively. 

Safe havens have been lacklustre these past two days as capital returned back to risky assets. The gold price tumbled 1.5% to the US$1,326 area and the Japanese yen slid to 109.4 against the US dollar. The dollar index registered a ‘U-shaped’ rebound as the subdued storms cleared the way for buyers to come back to the market. 

Technical Analysis:

US SPX 500 - Cash

  • Challenging key resistance level (161.8% Fibonacci extension) of 2,483
  • 10-Day Simple Moving Average sloped upwards
  • SuperTrend (10,3) has flipped upwards, suggesting the bullish side is taking control
  • The next major resistance level could be found at the 2,600 area

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