Many have been asking our view on the Straits Time Index so we’ll just share our humble view.
From a technical perspective, we can see the 20ma cutting the 50ma from above and this hasn’t happen for a year. Adding to that September is a seasonally lousier month for stocks. We would like to er on the side of caution and not be heavy long in the market yet until a clearer sign is shown. Trump’s tax reform and North Korea missile test are some factors holding the market hostage. The Moving Average are now acting as the resistance so unless a break above those could be strength to us.
We can see that whenever the straits time index try to rally, the rebound gets a little weaker and its starting to form a lower high in that sense. Recently it tried to break above 3250 but failed. Its support is currently around 3225 region and a break below that could send it down to a strong support of 3200 area first.
Market is also frustrating as its up one day and down the other. We advise looking at individual chart as some stocks are still displaying some strength.
This is just a short sharing but feel free to Contact US if you like to discuss more.