The 10-year US treasury yield (UST10Y) continues to retreat after failing to move above 5%. It is currently hovering around 4.66% to 4.67%. The levels to watch for a breakdown are Its 50-day moving average which is at 4.54% presently, and the neckline of a potential top formation by the UST10Y which is likely to be at 4.61%.
The Straits Times Index staged a sharp rebound on Nov 3, ending at 3,143, up 82 points week-on-week. The rebound has alleviated oversold readings, when short term smoothed 14-day RSI rose from a low of 25 on Oct 21 to 51 on Nov 3. A four-times tested resistance appears at 3,150, and the STI is likely to pause as it moves to this level.
ADX has eased from an overstretched high of close to 50 at the weakest point of the STI to 26 as at Nov 3. The DIs are turning neutral. Volume levels rebounded on Nov 3 as well, but remain lower than the last two weeks of October when equities came under some selling pressure.
