15 May '11, 1pm

STI Diverges From Dow; Thrice In A Row? – SharesInv.com

STI Diverges From Dow; Thrice In A Row? – SharesInv.com

In my previous analysis ‘STI Diverges From Wall Street; A Leading Indicator Or Just Bucking The Trend ’ published on 13 February 2011, I observed that the Straits Times Index diverged from the Dow Jones Industrial Average on two occasions. This phenomenon has appeared once more making it thrice in the recent years. While the Dow made new 52-week highs, the STI has gotten weaker. Such divergence could be read in two ways: that the STI is plainly weaker than the Dow and the STI has become a leading indicator of things to come on Wall Street. We can see in the recent instance that the STI started correcting in January 2011 while the Dow started only from the middle of February. The individual investor should interpret how these two occurrences are related but a keen believer would surely believe that the STI is ahead of Wall Street. View Full-sized Image The Straits Times Ind...

Full article: http://www.sharesinv.com/articles/2011/05/15/sti-diverge-...

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