Straits Times Index had reversed to downtrend mode.

Straits Times Index had reversed to downtrend mode.

It had been a roller coaster ride for Straits Times Index last week as the market speculated on the outcome of US Fed meeting’s outcome. There were initial fears of interest rates hike which caused strong selling pressure on Monday. Key uptrend support level at 3330 level was broken which can imply a change in trend. Further selling pressure struck the market on Tuesday which triggered panic selling in the market. Multiple support levels were being broken. And it might imply a downtrend formation. The Fed meeting on Tuesday and Wednesday did not yield a rate hike; instead, the low interest rate environment was being maintained. This brought realisation into the market and buyers rushed in to buy in the oversold market.  On Friday, STI managed to rebound further and test its breakdown level. STI closed at 3305.05 level with …