Dear readers, US stocks were down sharply yet again yesterday!
The Dow Jones went south by 2.37%
S&P 500 retreated 2.95%
NASDAQ Composite down by 3.62%
The movement of the above three US stock indices came on the back of the war in Ukraine.
Singapore stocks markets, being generally a price taker are poised to retreat when Singapore stock markets open, taking the cue from the three US stock market.
Based on the technical chart that I am using, the Straits Times Index (STI) is already now oversold as its RSI was below 30 as at 7 Mar 2022.
Some investors may think of bargain hunting but I would advise them to think twice as it is hard to go against a trend: currently the trend is on the way down.
There should be opportunities to bargain hunt at attractive entry points but for now, the global stock market outlook have too many bearish factors that investors entering right now may end up “catching a falling knife”.