Yesterday, the STI went south by 1.9% and with that, the STI based on the 14-day RSI was Oversold, i.e. the STI went into the RSI<30 region.
And if the above was not sufficient, the STI also went below the 200-Days-Moving-Average with yesterday’s performance. A crossing down below the 200-Days-Moving-Average is a bearish move since this could signal the start of a longer decline for the STI.
Since the start of this year, the STI has already gone below the 200-Days-Moving-Average once (in Mar 22), hence right now, the STI has crossed down the200-Days-Moving-Average twice already as at May 2022. For comparison, for the entire Year 2021, STI has crossed down the200-Days-Moving-Average twice, thus Year 2022 is going to be much more volatile year for the global stock markets than last year and I believe you would have noticed by down.
The key driver for the volatilities is the start of the increase of the interest rates by the US Federal Reserves and inflation. Hold tight to your monies for we may be looking at attractive opportunities in the stock markets soon, when the markets correct!