Shown above are the quarterly chart (3 months) for the STI from 1987 till now (24 year data).

Let go through some history of our Singapore Market

Blue Zone (Jan 1990 – 1993)

STI have been consolidating between the key resistance of 1530 and key support of 1350 (Around 10% variation) for the whole of 3 years.

In first quarter of 1993, STI managed to broke the 1530 critical resistance (Break 3 year resistance is very bullish signal) and continue its rally for 12 month before pulling back to the support of 2080.

Red Zone (Sept 1992 – Mar 1997)

After the 1 year strong rally in 1993, STI start to consolidate close to 4 years with the key resistance at 2430 and key support at 2080 (Around 15% variation).

In 2Q 1997, STI broke the support at 2080 and went into deep selling.

This selling down last for the ...