These indicators suggest that overall pressures are likely to remain downward. Support at 2,484 was breached albeit on low volume. The next short term support is at 2,450.
The Straits Times Index drifted lower, losing around 25 points week-on-week to end at 2,472. Its movement was a lot more benign than the volatility that has befallen the US markets. The CBOE Volatility Index (VIX), currently at 29.5 has been creeping higher from a trough of 25.5 on Sept 15. That maybe the new normal for the VIX as overvalued tech stocks face reality.
Locally, the STI’s short term stochastics is at the bottom of its range and an upturn could provide some reprieve from the downwards drift. Any rebound is likely to be tepid. ADX is rising, and the DIs are negatively placed. In addition, quarterly momentum has resumed its retreat after failing to move above its own moving average.
