S&P500
The STI, on the other hand, could experience some strength. An earlier break above 2,561 indicated an upside of 2,890, and the index is likely to move towards that target. This would take the STI above its 50-day moving average, currently at 2,666.
Indicators should be supportive. Quarterly momentum has strengthened a trifle, and moved above its own moving average. Volume expanded notably on April 30.
The short term indicators are a bit ambiguous. Short term stochastics is falling; ADX is at neutral levels, and the DIs cannot seem to make up their mind.
On the whole, the chart pattern suggests that the STI should make further headway.
Long term indicators have stopped declining at their oversold lows. Even though they may not fall furter, it is still too early to tell if they can stabilise.
Hence, as it stands, the STI appears to be still in a bear market rally.
Straits TImes Index
