Straits Times Index
STI has returned to retest 2,700 ~ 2,707 and closed 1 point higher ( 2,708 ). One point gain is not high enough to draw the conclusion it has successfully broken the tough resistance built up since Aug 4.
Tomorrow will be a crucial day ! A decisive close above 2,708 will signal further upside to 2,800~2,900. The psychology behind this is simple. There are a lot of traders waiting at the sidelines since Aug 4 because they are worried about market topping. If STI is able to break 2,708 decisively. They will be convinced the market is going to head higher and generate renewed buying interest.
On the flip side, we will see STI returns to the trading range again. UOB Kayhian is extremely bearish about STI. In their report dated Oct 12, they tipped STI to cap at 2,710 and downside to 2,200.
Tomorrow will be a crucial day ! A decisive close above 2,708 will signal further upside to 2,800~2,900. The psychology behind this is simple. There are a lot of traders waiting at the sidelines since Aug 4 because they are worried about market topping. If STI is able to break 2,708 decisively. They will be convinced the market is going to head higher and generate renewed buying interest.
On the flip side, we will see STI returns to the trading range again. UOB Kayhian is extremely bearish about STI. In their report dated Oct 12, they tipped STI to cap at 2,710 and downside to 2,200.
The closing today has caused my Elliot Wave chart to recount ( again... and again.... ). Wave 5 has once again been pushed back so wherever it is going to terminate we will still see the correction we anticipated for 6~8 weeks to take place.
Labels: Market Direction
posted by Market Wizards @ October 14, 2009
Comments: 1
