The reason why investors shouldn’t get too carried away with the 109-point rebound is because of the yield of the 10-year US treasuries chart. The 10-year US Treasury yield rose to a high of 4.09% before retreating. Its current level of around 3.78% is above the confluence of the 50-, 100- and 200-day moving averages at 3.705%, 3.65% and 3.3.698% respectively. Hence the confluence of the moving averages is likely to provide sufficient support to stop the 10-year Treasury yield from falling further.
As the 10-year US Treasury yield finds support, the US equity market’s rally may lose its legs. That would cause smaller markets like the SGX to ease. As it is, the STI has been trading within a range, and is unlikely to break above the top of that range in the near term.
