Outlook not rosy and STI might consolidate for a bit

The global outlook this year pales in comparison with what was expected and the market is starting to show it bit by bit. In the past week, we saw optimism dissipate from the market as investors continue to pull out capital from their lack of confidence with the current valuations. As such, we should be expecting some consolidation or further downside for the coming weeks. In this week’s market outlook, we will look at the charts to find support levels that we can rely on if the market dips to identify opportunities to reenter the market.

STI – Updated Daily Chart

STI closed with a large red candlestick as the global market continues to stay fragile. At the moment 3240 is holding however it is likely for STI to trend lower due to its slowing momentum and lack of...