Will 9 days MA bounce or break? (w.r.t 20 days MA)
STI is acting up because the euphoria of a holiday celebration ahead is starting to challenge the worries of the second and third waves of infection around the world. The silver lining of the matter is that Singaporeans are spending aggressively and keeping most businesses optimistic at least in the near term. However, if this goes on, many investors will start pricing in the longer-term reduction in revenue due to a reduction in international visitors in Singapore.
That said since STI is nowhere near pre-COVID levels or around 3000-3200, we can safely say that the optimism in the market is not overly extreme, whereas it is still considered rational and thus there is little concern for the market to go back to the bottom in end October 2020. Right now, you will see that counters in STI are starting to act independently unlike in