Straits Times Index facing correction risk

Straits Times Index faced a week of profit taking as concerns on US president Trump’s policy implementation starts to face headwind last week. Market participants made use of such opportunities to exit the market despite a strong start in the week. 3160 resistance level held firmly despite being broken for a few days. The strong gap down action on Wednesday had confirmed the bearishness and this lead to confirmation of higher high formation. The market could have closed much lower during the week but bargain hunters or possibly short sellers were buying into the market; causing STI to recover on Friday. Therefore, STI ended the week with only 26.48pts down, ending at 3142.9 level.

Many market watchers have started calling for correction movements to happen in the market. Is it true that correction will be happening? If it happens, how far down …