(May 31): With the break below the 200-day moving average at 3,180 caused the decline by the Straits Times Index to quicken. Support stays at Jan low of 3,012. The break below its equilibrium line by quarterly momentum and its continued decline has caused the index to weaken. In addition, volume expanded as prices fell, indicating selling pressure.
ADX is rising, and the DIs remain negatively placed, confirming the weaker phase ahead. Short term stochastics remains at the bottom of its range and the indicator is attempting an upturn. But with medium term indicators weak, the bottoming out of short term indicators has not yet had an impact. Annual momentum has turned down and it too is likely to ease.
