The STI is continuing to decline from a rejection of the 2700 mark. The S&P 500, CRB and Dollar Index have simultaneously tagged their respective key support/resistance levels as well, resulting in a pullback across the board. Short term support for the STI is in the 2500 to 2515 region. There should be room for another leg upward once the STI digest this correction as the current trend is very unlikely to end due to 1 week of reversal.
The STI reacted to the 2700 mark over the past week and has since sold off sharply. The sharp sell off is likely to be due largely to inter-market relations as well. The Dollar Index tested key support at 77.68 to 77.45, the CRB, key resistance at 266 and the S&P 500, the 1007 to 1013 region as well.
The confluence of the major inter-market elements testing key support and resistance leves at the same time made the probability of a short-term reversal high. The STI’s sell off has been particularly sharp due to the sell off from a confluence of the 200 week moving average, the 2700 mark and the 50% retracement from (3907 to 1455) that we mentioned last week.
Key support is rather far away at the recent 2424 swing high, although the 2500 to 2515 region should provide interim support should the STI trade to that level. While the STI is correcting in the short-term, there are no clear signs of a top forming in the daily charts as of yet. Because of this, the overall trend is still long biased. There is still the possibility of another minor leg up to possibly test 2744 once the STI digests this correction.
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3 comments:
Agreed with you, STI still have room to grow.
Just curious, is this article original or are you the same analyst from POEM ( Phua Ming-weii ). If you are not Phua, I think you should state the source of article.
Not too sure where is the source, I put the article here as I find it useful and I use it to remind myself. I hope the author can understand and would like to share his / her analysis with others.
If he minds, I can take the article off. But it is kind of difficult for me to find back where is the source. I am sorry.
And whoever the analyst, these are great, and I hope he / she don't mind to share with others.
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