SGX is a good market indicator
03
November
One of the accurate indicator I use to look at mid term market movement is the price behavior of SGX.
SGX is the first to turn around during the March bottom and it’s also the stock to have stalling behavior over the past 2.5 months.
The midterm uptrend is still intact but the shortterm movement is heading down:
1. The price trades too long below 50 days MA
If we see the brief penetration in June/July, we could see it as consolidation.
The current penetration below 50 MA is far too long and the MA itself is bending down.
2. It is forming downward sloping channel.
This mini channel is mini trend. One positive note is that it’s currently supported by the channel which is not steep.
The slope will accelerate if the current support is broken.
as no one knows for sure the next minute of market movement, it maybe worth to look at leading indicators and stay defensively at this time.
