Chart of the day: Singapore stocks under pressure
All of a sudden, stock markets in many countries got a case of the jitters, having seen a sharp sell-off over the past two weeks in what is a classic correction (a drop of roughly 10 per cent). Analysts tell us it is not warranted as global economic fundamentals this year are sound. That may be the case, but certainly sentiment has changed and perhaps investors are realising that some assets are just too expensive. This might be the case for the Straits Times Index of the top 30 companies in Singapore. The mean regression since the summer of 2009 and a 1.6 per cent (Fibonacci number) standard deviation around this point are plotted, with the upper line having capped neatly in three previous occasions.
Nicole Elliott is a technical analyst