With quarterly momentum in sharp retreat, and the Straits Times Index negatively placed vis-a-vis its 50- and 100-day moving averages, both coalescing around 2,570 and 2,587 respectively, lower levels are probably likely over the next few weeks.

Any rebound, if it materialises, is likely to be tepid. Short term stochastics is on its way down and its not yet at the low end of its range. The 21-day RSI is also trending downwards. Although it is at 39, and its lower boundary is usually at 30, in March this year 21-day RSI touched 13. ADX has turned up and the DIs are negatively placed.

The STI ended the week at 2,490, a shade above the Aug 3 low of 2,484. This could well be tested in the week of Sept 14–18, and possibly breached on the downside. If so, a downside objective is indicated with the vertical measurement. Initially, though support appears at the 2,389–2,400 range. By then short term indicators could be sufficiently oversold to trigger a significant rebound. 

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