In sum, the candlestick chart pattern is negative, and this is confirmed by short term RSI is at its equilibirium line indicating it has the potential to fall.
The only saving grace is the low level of ADX. It is falling and is now at 14. As such, the STI can fall, but the downside could remain limited to 3,159, which was the low made mid-month.
Unfortunately, yields on 10-year US treasuries is rising, and confirmed by its rising ADX. The 50-, 100- and 200-day moving averages are coalescing around 3.6285% while the 10-year yield is at 3.87%. There is every likelihood that the 10-year yield tests 4% before retreating.
Rising risk-free rates are usually not positive for equity markets as they automatically raise the weighted average cost of capital, causing prices to fall.
See also: Straits Times Index shows signs of decoupling from the US by outperforming
