At the same time, quarterly momentum, which has risen from oversold lows, is encountering resistance at its equilibrium line. Both the confluence of the moving averages and quarterly momentum's equilibrium line are likely to cause the rally to stall and the index is likely to spend the week of April 28 - May 2 consolidating its gains.
On a positive note, the STI regained its 200-day moving average on April 16. The 200-day moving average is currently at 3,680.
The index has been hugely volatile since March 28. After touching 4,000 on March 28, but closing near the low at 3,972, the index went on to fall by 589 points to a low of 3,393 on April 9. Much of the fall took place after the Trump administration's announcement of its so-called Liberation Day.
Interestingly, the rebound was equally swift. Since April 9, the STI has risen by 430 points to a rebound high of 3,831 reached on April 24. On April 25, a small bearish engulfing pattern has formed, indicating the onset of a consolidation phase. If this phase is shallow, the index may fluctuate within a range of 3,846, a level that is likely to act as resistance, and 3,680, which is also the 200-day moving average, acting as support. Resistance/breakout is at 3,846, and an eventual breakout would lead to a re-test of 4,000.
See also: With no nasty surprises from the banks, the STI is steady as it goes
Both the S&P 500 and the Nasdaq Composite have not regained their 200-day moving averages, and the up-momentum may not be sufficient to take these two indices to their respective 200-day moving averages. Although the Nasdaq could rebound further, this is likely to fade during the week of April 28 - May 2.
