Dear all

Our STI has broken a one-month trading range of around 3,288 – 3,348. Where will STI and the other indices go from here?

S&P500 last closed 2,426

Based on Chart 1 below, although 20D exponential moving average (“EMA”) is trending lower, the other EMAs, namely 50D, 100D and 200D EMA are still trending up. RSI closed at 37.2. Since 7 Nov 2016, the lowest RSI was around 35.9 on 10 Apr 2017. Although the directional indicators (“DIs”) are negatively placed, ADX is still at a low 12.2 which is indicative of a trendless market. My personal view is S&P500 should find good supports around 2,404 – 2,419, coupled with the relatively low RSI. A sustained break below 2,404 (albeit very unlikely in the near term) negates S&P500’s (tad) bullish chart.

Near term supports: 2,416 – 2,419 / 2,404 / 2,393 – 2,395

Near term …