The week of Feb 13-17 turned out to be something of a roller-coaster ride for followers of the Straits Times Index. By Tuesday 14 Feb, the STI had fallen by 80 points at the end of the trading day, with the index closing at 3,280 from the Feb 10 level of 3,360. This took the STI below the resistance-turned-support level at 3,306. The index regained this level on Feb 15, and ended the week at 3,328, above the support of 3,306, and above its 50-day moving average support line at 3,298.

Directional movement indicators have turned neutral. Quarterly momentum is falling but in positive territory, and could find support at its equilibrium line. The moving averages are intact and these could provide some support to prices. Overall, it's touch-and-go, but technically, prices should hold.

Risk-free rates have been rising in the US as producer price inded tipped up, and inflation slowed but not enough. As a result yields on 10-year treasuries rose to 3.89%. Rates were higher in October 2022 but this is the highest level this year.

In Singapore, yields on the 10-year SIngapore Government Securities (SGS) rebounded back above 3%, ending the week at 3.27%, the highest level since the start of the year.

As a result, traders perhaps should tread cautiously.

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