Posted on May 18, 2010 - by AK71

STI at 2,425 points?

What we have is a sea of red.  Sentiments have not been so bearish in a long time as the HSI sank below 20,000 points.  I continue to believe that any rebound that comes along in the near future should be an opportunity to reduce exposure in the stock market. This is more so for stocks which are clearly in a downtrend. Having said that, the STI is holding up rather well under all the selling pressure.

As the index retreats, the OBV declines. This is an obvious sign of distribution. The MFI has been forming lower highs and lower lows.  Positive buying momentum is lacking.  In the near term, the 2,780 level or so should be an important support.  This is confirmed by Fibo lines, the rising 200dMA as well as candlesticks. Read more…

Related posts:

1. STI Index down 5.4% or 154 points last week…..inline with global stock markets…..what should you do?
2. Market Outlook – summary of the main points during my presentation at AICE (Asian Investment Conference and Exihibition) last Saturday
3. STI: Marching in place in March?