US bond default concerns weigh on regional bank stocks, causing major US indices to fall slightly with only the Nasdaq finishing slightly higher. On May 12th, Taiwan’s stock index futures opened down 0.52%, electronics futures opened down 0.59%, and finance futures opened down 0.19%. The short-term outlook for Taiwan’s stock market remains weak and the index is struggling to return to the vicinity of the 15650 monthly quarterly line. Downward pressure persists, and investors are watching for a gap in late April.
On the chip side, Taiwan stock index futures‘ net three major institutional investors reduced their net long positions by 1985 contracts to 4088 contracts. Among them, foreign short positions increased more than long positions, reducing net long positions by 123 contracts to 6187 contracts. The top 10 traders, including specific institutional investors, reduced their net long positions in Taiwan stock index futures by 2160 contracts to 2076 contracts for the entire month.
Taiwan’s stock index closed lower with a solid black candle below the 10-day moving average on May 11th. If the index cannot quickly rebound above 15600 points, the pattern of oscillating near the quarterly line since this month may be disrupted, and there may be a possibility of retracing the lows of late April.
