July 28, 2007
STI Index - an Update on the technical outlook
Last 2 weeks, I have been updating on the STI index chart and suggested that the index looks like it is turning. I said that the what is most likely for the index is that after breaking the uptrend support line, it will go up and "kiss" the uptrend line before making a plunge down.
The market seems to play my script out exactly.
Given the fall in the Dow Jones yesterday (27 Jul 2007), I believe that the STI has more room to go down. However, I also believe that the STI should find support at 3000-3300 level. This is only a preliminary assessment. Market is changing everyday, and when new information on the chart unfolds, than I can fine tune my assessment.