Indicators point to continued bull market

THE sudden drop of another tariff bomb, coupled with dampened global growth prospects, sparked a blaze that wiped out US$16.7 trillion in market value, or 7 per cent of the S&P500 Index's value in May. The flame was extinguished in early June by hopes of a rate cut by the US Federal Reserve and a possible handshake between US and Chinese leaders at the G-20 Summit in Osaka. The first week of June logged the highest weekly return of the year. Yes, just as quick as it sounds, selling pressures ended as May came to a close even though fundamentals did not change significantly. Sounds familiar? The psychological effect of the 'Sell-in-May' belief might play a role here. (see amendment note)

Short-term view

Based on the daily candlestick chart, the S&P500 index recorded a yearly high of 2,954.1 in intraday trading on May 1, before the selling kicked in the following day. After the blaze in May, the index started off in June with a five-day winning streak.