Based on my analysis on the current STI, it seemed like Big Operators have already taken profits and started to short sell. The rally for the past 3 days looked sustain and the operators might be planning to give this rally one last boost to distribute more. For this rally to continue, signs of absorption would need to present itself it a clear and decisive manner. However based on observation, i still don't think STI's rally could sustain any longer. I might be wrong because anything can happen in the stock market.
For the near term trading, i would look to short sell. I would continue to watch for big blocks of shares at critical price levels. They revealed the true intentions of the big operators on whether a further rally should continue or the decline will take over and this will provide a clue on what to look out for in the bigger time frame.
Since operators had already distributed an enormous quantity of stock, it is inevitable that they would soon conduct a sharp decline. In fact, i believe traders/investors will be astonished at the speed with which STI is once again declined to the recent low.
Ronald K
