Is the Straits Times Index ready to do a correction yet?
“We are way due for correction!”
During the Shares Investment Conference on 05 October 2013, experts predicted that the Singapore stock market is due for a correction in 2014. Is the stock market correction of 2014 here finally following today’s price action?
1-2-3-test-and-resistance price action
What happened to the STI after the conference?
As if on cue from those experts, the Straits Times Index started 2014 with a ‘bang’ moving downwards swiftly from a high of 3169.2 on the first trading session of the year to a low of 2953.01 on 04 February 2014 (see orange box in chart). Timing was impressive but the less than 10% correction was closer to a whimper. If we moved backwards to the high of 2013 at 3464.79, then the market corrected almost 15% by the time it reached low early this year (pink box).
Is the big one here yet?
Very hard to say. The term ‘correction’ has traditionally been attached to market falls between 10 to 20 percent. We don’t know if the one experts were referring to are already over. Or may be one BIG one is coming soon.
Director, TerraSeeds Market Technician Pte Ltd. Trader, investor. @sohtionghum was picked ‘Top 70 Forex Twitter in 2015’. Operates multiple strategies.
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