STI has broken below the 1844 level

The STI has failed to maintain above the 1844 level, greatly reducing the odds of the recent rally continuing. The CRB index represents growth and influences STI direction. With the STI tracking the CRB index very closely, we advise investors to keep vigilant watch on the CRB. A decline to 208 on the CRB will likely take the STI lower with it. Support for the STI is at 1718, followed by 1600.


The STI has broken below the 1844 level. This is the market telling us that the recent mini-rally had weak buying backing it. The current market conditions tell us that the STI will most likely range trade between 1844 and 1718, although in this case, a wide trading range between 1916 and 1718 is also acceptable.

The critical numbers, 1916 and 1600 remain in tact. A close above 1916 will take the STI to 2025 and a close below 1600 will take us to the 1473 October 2008 low.

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