Singapore market (10 Dec 12)

Singapore market: likely to open firmer after US stocks advanced last wk, giving the S&P 500 its longest winning streak since August, as employment growth topped forecasts. This morning, the S&P 500 index futures climbed a further 0.1% to 1,417.60 at 7.09am, after China’s statistics bureau announced yday that China’s industrial production climbed 10.1% yoy in Nov and retail sales growth accelerated to 14.9%, while inflation was 2%. In the region, KOSPI and Nikkei are both +0.3% at 8.06am. Technically, the STI is hovering around the 52 wk high high at 3,111, a key resistance level. A successful break above this level could see the index move higher to test next resistance around the 3,200 levels. Near term momentum is positive, supported by the rising RSI and Stochastics. Nevertheless both indicators are in oversold territory, hence need to be mindful of any downward reversal.