At the same time, quarterly momentum, which has risen from oversold lows, is encountering resistance at its equilibrium line. Both the confluence of the moving averages and quarterly momentum's equilibrium line are likely to cause the rally to stall and the index is likely to spend the week of April 28 - May 2 consolidating its gains.
Despite a temporary consolidation during the week of April 28 to May 2, the Straits Times Index (STI) is likely outperform the US market due to the former's stronger technical indicators and chart pattern.
In the short-term, the STI may continue to consolidate its recent gains. The index ended the week of April 21-25 at 3,823 which coincides with the confluence of the 50- and 100-day moving averages at 3,836 and 3,821 respectively.
