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A mild retreat by risk-free rates won’t help equities to rally

Goola Warden
Goola Warden • 2 min read
A mild retreat by risk-free rates won’t help equities to rally
With ADX at 13, the STI is likely to remain rangebound. Despite a minor top, 10Y US yields may resume their climb after a pause
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Not much happened in terms of price movement for the Straits Times Index which rose around 13 points during the last week of September to end the month at 3,217, and up 21 points during the month.  

For most of the month, though, the index moved within a range with resistance at 3,285 and support at 3,200. The 50-, 100- and 200-day moving averages are at 3,247, 3,226 and 3,252, with the STI moving within 30 points above and below these levels.

With the index rangebound, directional movement indicators continue to stay within neutral readings. ADX is at 13, a relatively low level confirming the lack of a definite trend. The DIs are more or less neutral with a mild negative bias.

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