From a technical perspective, the STI ended the week at 4,848, below the rising 50-day moving average at 4,862. Since the index fell below its 50-day moving average on a Friday, the break cannot be seen as temporary. Notably, the STI’s indicators had pointed to signs of a consolidation.
The Straits Times Index (STI) and the S&P 500 Index (SPX) may be taking different paths. The comparative chart between the STI and SPX shows that the STI has outperformed the SPX since Trump became president. The SPX’s underperformance is probably due to Trump’s volatility and the need to eke out wins for himself without heed to the cost. If that is the case with the Iran War, the SPX could continue to struggle.
