Straits Times Index in the midst of correction
Strong selling pressure seeped into the Straits Times Index as the stock markets of the whole world went into selling frenzy. The selling sentiment started in US market first which created a domino effect to other leading markets. Reports of corrections happening became real as profit takers scrambled to exit the market quickly after a long streak of bullish movements since last year. Rebound attempts that happened during the week became opportunities for sellers to exit the market. This bearish spiral caused STI to lose a total of 152.58pts for the week; ending at 3377.24 level.
US market managed to close positively last Friday. This made many wondered whether it signifies the end of the bearish pressure. Is it time to buy into the market?
Let’s analyse STI’s chart to give us a better perspective.
Trend: Possible sideways to downtrend, …