My take on STI

I believe I have lapsed for another 2 days on my blog. There is nothing much to write right now, market is extremely dull.

I have a check on CNA forum today, some forumers commented that STI is very strong! If it is, I don't see it. Probably they are referring to STI in the green even though world market started falling. Well, haven't they considered STI to be lagging?


Fig 1 STI Weekly Chart

On the weekly basis, both indicators are still rising but with limited up-side. At the same time, STI itself is reaching the Fibonacci Arc, something is going to happen, I believe the Fibonacci Arc will trigger the STI to tur south.


Fig STI Daily Chart

On the daily basis, even when STI is up, it continues to trade in a tight band. Both indicators seems to be making the second top, but even though STI reached a new peak today (as compared to 2 days ago), the indicators has not surpassed the previous high. So is this a potential divergence?

If I am to analysis the situation, this is not a time to go in nor come out of Sg market. It is still a hold.