STI Upward Trend Under Pressure
STI vs USDSGD
Above is a chart showing the inverse relationship between STI and USDSGD. A strong USDSGD generally leads to a weak STI, and vice-versa.
The relationship as it potentially points to funds flowing into and out of Singapore market.
Last May, we saw USDSGD broke out from its accumulation phase with STI breaking below its Distribution phase which lead to an Mark Down phase.
In recent trading, we seems to be in similar position again. And if USDSGD is to breakout from its $1.362 level, we will potentially see STI entering into Mark Down phase again.
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