STI Review

The STI remained directionless for the past few days, several technicalsignals remain mixed.- The STI continued to be resilient, but the market breadth failed toindicate that the uptrend will emerge.- We will only be convinced if the STI crosses above the resistance at 2280with strengthening in market breadth.- To deal with such situation, the most appropriate strategy we reckon isto sell at a higher level. The market should not be resilient at a higherlevel.- The USD/SGD, which has an inverse relationship to the STI, remainsstrong. It will exert pressure on the STI for the short-term.- The S&P 500 is near the resistance of 1246, and a break above this levelmay fuel a short-term rally in the regional bourses.- Oil price is another factor that may affect the market. A break aboveUS$60 may commence a new uptrend in crude oil.