Dear readers, the Singapore Stocks STI went below the psychological 3,000 mark intra-trading day yesterday to 2,984.47 before paring the losses to close the trading day at 3,012.84; slightly above 3,000. Looking at the chart of the STI, the last time the STI closed below the 3,000 mark was somewhere back in Dec 2016; so it has really been sometime since the STI closed at below this 3,000 level. Was I surprised at the downturn of the STI? Not at all! Recall my post two weeks ago regarding my views of the STI? (you can revisit the post here ). I said something to the effect that the STI is poised to reach the 3,000 level and when this 3,000 level is crossed below, the downward momentum that of STI going south will be faster.
I do not think that the Singapore stocks market rebounded off a low today. It is just that buyers bought into Singapore stocks when the STI reached below 3,000 support thinking that they bought into the Singapore stocks cheaply. Sooner or later, I believe investors know that this support of STI at 3,000 will not be sustainable and they will sell their stocks. Thereafter, the STI will head south further to reach 2,880 before going to 2,500. Join the emailing list to receive regular Financial and Singapore stocks newsletters too! Like" me on Singapore Stocks Investing Facebook page to receive all posts on your Facebook as well as read more articles. Follow me on Twitter too.
