SINGAPORE (June 12): The Straits Times Index has been impacted by the volatility in the Dow and S&P500 indices, and the uncertainty in the Hang Seng Index.

Technically, though, the breakout above 2,620 still looks good, and this level provided support for the retreat. The 50-day moving average is at 2,581, and is likely to coincide with the breakout level which would provide additional support. This could occur during the week of June 15-19.

A minor negative signal showed up in the chart pattern and this involves the close below 2,700 at the end of the trading week, but the index remained above the breakout level. On June 12 the STI opened at 2,629, and moved to a low of 2,609, testing the support but it managed to rebound off this level to end the session at 2,684, confirming 2,620 as a support.

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