As it is, the Straits Times Index fell rapidly to 3,251, an intra-day low on Feb 24, closing at 3,276, a tad above the50-day moving average which is currently at 3,261.
Earlier, Right Timing had flagged support at the 3,294 to 3,300 range which, unfortunately appears about to be breached as the STI ended the week of Feb 21-25 at 3,294. As it stands, the break above 3,240 which took place in the second week of Jan remains valid, as the index has remained above this level. The upside from the breakout of 4,000 appears somewhat remote at this point.
The moving averages remain intact. However, quarterly momentum has turned down, albeit in positive territory. The week of Feb 28-Mar 4 is likely to be a volatile one for traders, and the 3,240 level needs to be watched in case it gives way.
