US indices and precious metal prices were unmoved overnight, as market seemed to have entered into holiday mood ahead of upcoming the Christmas and New Year break.

The volatility index Jan 2018 contract has dived further into the low-teens, suggesting extreme tranquillity in the stock market. This situation, however, may not last too long in the post-holiday season if the VIX dives below 10 as that might induce contrarians to come back to the market and long volatility.

Singapore’s stock market dropped 12 points or 0.36% on Thursday, with SGX’s daily turnover being only S$800 million. The Straits Times Index is expected to consolidate at around 3,400 points by year-end, with profit-taking activities capping the upside of stock market movements. Many money managers and investors are staying on the sidelines towards the holiday season, as there seemed no need for ‘window dressing’ this year’s astonishing rally.

Volatility Index Jan 2018

The US dollar index slid for a fourth day to the 92.8 area, which sent crude oil prices to their two-week high. Technically, the Brent oil – Cash product is challenging a key Fibonacci Extension level of $64.6 area. It has attempted a few times over the past four months but failed to break through this strong resistance. Breaking out above this key level will open room for more upsides towards the next major resistance at $68.0, which is its 200% Fibonacci Extension level. The crude price is underpinned by recent drop in the US commercial crude inventory but will face some pressure when the North Sea pipelines resumes operation.

Crude Oil Brent – Cash

CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.