September 17, 2007
STI update - Part 4
The STI moved up nicely. On Friday, it traded higher but closed the day at the low, forming a "doji". This is bearish in nature. From the trend line, it traded above the up trend line. This is term a "throw over". The whole up move from August 2007 looks like a rising wedge to me and thus I view this as a correction.
I stick to myview that the up move in the STI is a correction within a correction, and thus I expect the STI to have another leg down towards the 2800-3000 level.