Straits Times Index sitting on the fence

Last week, the Straits Times Index faced a streak of bearish actions as market participants were reacting US interest rate hike concern during the early week. Bullishness kicked off the week but it was unsustainable. Sellers dominated the market on Tuesday which prevented STI from reaching out for this year’s high at 3611 level. Powell, US Fed chief, had indicated the possibilities of interest rate. This comment was not well received by the market. To make the matter worse, US announced that they will implement import tariffs in steel and aluminium. This shook the market further and caused defensive cries throughout the world. No doubt, Singapore market reacted according and ended the week below 3530 resistance level. 54.02pts was lost during the week as the market closed at 3479.2 level.

Bearish reaction last week had caused traders to think twice of …