Straits Times Index STI Supporting Stock Market Bulls

Straits Times Index (STI) is regarded as the benchmark index for the Singapore stock market. It tracks the performance of the top 30 companies listed on the Singapore Exchange. It is jointly calculated by Singapore Exchange (SGX), Singapore Press Holdings (SPH) and FTSE Group (FTSE).

Applying the One Market concept, we know that major world indices around the world are oscillating on the same cycles. In the following chart, we overlay STI with 3 different indexes from USA (SPX), Germany (DAX) and Japan (NIKKEI) still we notice STI is trading in the same direction as the rest.

Overlay of STI, SPX, DAX, NIKKEI



Since the 2008 Financial crises, the majority of indexes around the world recovered and made new all time highs and the cycle fro; 2009 is still in progress despite the media keeps calling for a big crash. In the next Chart, we’ll apply the Elliott Wave Theory on Straits Times Index to identify the current structure taking place.

STI Weekly Elliott Wave Chart

STI Weekly Chart 4.19.2018


From 2009, STI did 5 waves move in a diagonal which ended on 2015 peak followed by 3 waves pullback into early 2016 low like the rest of the stock market. Up from there it started a new 5 waves impulse to the upside and managed to break above 2015 peak. This move created a bullish sequence to the upside and opened the door for the Index to trade higher toward equal legs area 4630 – 5120.

Ideally, this move to the upside should be seen around the globe as major Indices are expected to continue their rally in the coming years before a major peak can take place on 2020 – 2022.

Switching to the daily chart of Straits Times Index, we can notice that the instrument seems to have ended the current correction from January and could have already resumed the move higher even there is still a possibility of a double correction lower as long as it remain below January peak.

STI Daily Scenario 1 Elliott Wave Chart

STI Daily Chart 4.19.2018 S1

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