Global Retracement following significant rally
As observed on the S&P 500, it has returned to 3230 levels on Monday on 8 June 2020. Following that, markets start to take profits knowing that the employment data from May will be worse off since April’s data was erroneous. as a result, STI is following suit and has retraced back to the resistance turned support level at 2668 a week earlier. As of now, STI is positioned to open flat or slightly positive since there was a rebound on the US market.
STI – Updated Daily Chart
After a 9 trading day rally, STI finally retreated to the mid-level of the parallel channels as drawn on the Daily Chart, the positive side of things comes from the fact that the steep gap was quickly filled and it ended with a Hammer showing that the short term retracement has largely ended.
STI – Updated Monthly Chart
On the monthly chart, the 20 Months Moving Average has begun to flatten and it signals a weakening...