On a positive note, ADX is at zero. The DIs which were at extreme negative levels in early March, are now neutral. Most likely the short-term trading range could turn out to be narrow. The VIX Index is at 19, and this suggests, that volatility has receded and market movements may be relatively narrow, and possibly calmer than in the first half of March.
Even then, investors and traders should be watchful of any sudden volatility given that the STI is facing some resistance after a number of sessions of white candles. In addition, the small black candlestick body was accompanied by a larger volume than during the white candle days. This is also suggesting some sort of retreat. If markets stay calm, the retreat is likely to be shallow.
Yields on the 10-year Singapore Government Securities didn’t move much, rising by about 10 basis points during the week to end at 3.94%. The yield on 10-year US treasuries has rebounded, but its range is also likely to be narrow. It ended the week at 3.54% while its support at 3.44% is barely holding.
