The local banks have run out of stream causing the STI to meander. This is despite the continued rise in the US Federal Funds Rate. Recession and inflationary fears have gripped Wall Street, and those uncertainties have spilled over to the STI.
Based on the relative strength comparative indicator, the Hang Seng Index is a lot weaker than the STI, and it lost further relative strength. Week-on-week, the HSI was down 880 points, ending the week of Apr 18-22 at 20,638. In the short term, mildly oversold pressures could trigger temporary rebound towards the breakdown level of 23,000. Further out, the chart pattern remains weak. As a result, the HSI may drift lower. Support is at the Mar 15 low of 18,531.
