So far so good but all it takes is another “trigger” of sorts

Right now we are at an interesting juncture, the world is honestly sick of any more bad news. The US market is still trying to stay bullish while the rest of the world continue to ponder about the impacts of the virus on their markets and economy. Nevertheless, the global economy still looks resilient because so far the Omicron virus seem to be more transmissible but only causes milder symptoms. Therefore, all we need is another bad news for another expert on the matter and we should be seeing another dip more severe than 2 weeks ago. In this week’s post, we will try to find out how does investors in the Singapore market feel and what are the key support levels that we can look out for in the coming week.

STI – Updated Daily Chart

The daily chart seems to be doing a minor u-turn because of last night inflation data in the US. The fear that we notice stems from the fact that the US market always seem to be able to drag us down most of the time when the market retraces due to economic data. However, since the US closed a lot higher even after inflation hit record levels, I feel that there shouldn’t be much of a negative impact on the Singapore’s market at least at the start of the week. If there are any bad news coming in the week ahead, we should determine its severity and use the 3120 and 3080 levels as key support levels

STI – Updated Monthly Chart

We will continue to take a longer term view for the time being because there is still a lack of certainty due to the Omicron Variant. The monthly chart seem to be still stable and leaning towards the positive side till date. However, we are still no where out of the woods since the candlestick still refuses to close above the next minor support level.

Author’s Call as of 11th December 2021

• The market remains relatively neutral as there are still reasons to believe that the virus turns out to be more severe than expected
• The key levels on the daily chart to look out for will be 3120 and 3080 in the case of any bad news in the coming week
• The monthly chart show that the slight positive sentiment of the market is still much less confident than ideal
• Watch out for potential triggers and stay cautious in the coming week, sell if you have scooped to get back more of your reserve warchest if you have started using some of it during the correction.

Author’s Call as of 4th December 2021

• New Omicron variant threatens to destabilise the global market as countries reintroduce restrictions
• 3100 level continues to be the support level that we have to look at in the coming week
• The monthly chart continues to stay positive in the month of December for the time being
• The optimism last week might not last if there are newer developments for the variant in the coming week