Singapore: STI Index (.STI) mixed after China-US trade talks show progress
Shares were mixed in Asia on Monday after trade talks between China and the U.S. wrapped up with officials on both sides claiming progress and the U.S. government reported a strong rebound in hiring in March.
Japan’s benchmark Nikkei 225 index slipped 0.2% to 21,769.58 and the Shanghai Composite index sank 0.7% to 3,224.45. South Korea’s Kospi lost 0.1% to 2,206.46, while Hong Kong’s Hang Seng index added 0.1% to 29,962.22. India’s Sensex shed 0.1% to 38,828.16. Shares rose in Taiwan but fell in Singapore and Indonesia.
China’s official news agency said Sunday that trade talks with the U.S. in Washington last week “achieved new progress.” It said remaining issues will be handled through “various effective means” but did not elaborate on where or when further discussions will happen. It said three-day talks that ended Friday dealt with issues including technology transfer, intellectual property rights protection, non-tariff measures, agriculture and enforcement.
Beijing and Washington are working to end a standoff over Beijing’s industrial and technology policies that has shaken financial markets and darkened the world economic outlook.
White House press secretary Sarah Sanders said in a statement Friday that “significant work remains” and the two sides would be in continuous contact.
Wall Street closed out another solid week of gains Friday, logging its longest winning streak in a year and a half. A strong rebound in hiring eased worries that the U.S. economy is slowing too sharply, helping to keep traders in a buying mood.
The unemployment rate last month remained near a 50-year low of 3.8%. Average hourly earnings rose 3.2% in March from a year earlier, which was weaker than economists’ forecasts. Markets pay close attention to the numbers because while higher wages help workers afford to buy more things, they also crimp corporate profit margins.
The S&P 500 rose 0.5% to 2,892.74. The Dow Jones Industrial Average gained 0.2% to 26,424.99. The Nasdaq composite climbed 0.6% to 7,938.69, and the Russell 2000 index of smaller company stocks picked up 1% to 1,582.56.
Profitability is a top concern as companies line up to begin reporting their first-quarter results next week.
Overall, the bias in prices is: Upwards.
By the way, prices are vulnerable to a correction towards 3,233.03.
The projected upper bound is: 3,378.37.
The projected lower bound is: 3,277.76.
The projected closing price is: 3,328.07.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 8 white candles and 2 black candles for a net of 6 white candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 white candles.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 84.1259. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 26 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 71.23. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 1 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 95. This is not a topping or bottoming area. The last signal was a sell 0 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 6 period(s) ago.
Rex Takasugi – TD Profile
STRAITS TIMES closed up 10.180 at 3,325.600. Volume was 1% above average (neutral) and Bollinger Bands were 34% wider than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 3,273.63 3,231.19 3,178.84
Volatility: 8 10 15
Volume: 229,196,640 214,812,496 219,763,904
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
STRAITS TIMES is currently 4.6% above its 200-period moving average and is in an upward trend. Volatility is low as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume into .STI (mildly bullish). Our trend forecasting oscillators are currently bullish on .STI and have had this outlook for the last 4 periods. Our momentum oscillator is currently indicating that .STI is currently in an overbought condition. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.
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