Deep correction inbound for SGXThanks for viewing.
First of all, this isn't based on any fundamental factors to do with Singapore per-se, apart from Singapore standing between two huge but struggling economies; China and Europe. Singapore is a very nice place, with great people, who have overcome significant challenges to create what is a shining light in Asia. If my view eventuates, I am confident Singapore will bounce back stronger than ever afterwards.
Generally, we can see an equities index that has yet to reclaim 2008 highs, and hasn't shown anything approaching the bullish behaviour of the S&P 500 since March 2009. The rally has been far from convincing and seems to be showing a bearish set-up with medium term targets of -20%. There is a weekly MACD histogram tick on the downside and the MACD moving averages are crossing over negative. There is some moderate bearish RSI divergence between the March 2017 high and the January and April 2018 swing highs that preceded the 18% drop to the Oct 2018 swing low. I would be eyeing a break below first, 3104.03 as an entry point, followed by a break below 2955.68 targeting 2730 and below.
This is just for me to keep track of the market behaviour vs my targets - I am not trading this set-up. Although, I hope there aren't too many people in highly leveraged long positions.
Protect those funds.
