The last post I blogged about STI having a reaction and nevertheless it did come on the very next day and the market acted accordingly to what i predicted. It's not that i am a genius or i can predict the future, but because the the market exudes signs of fatigue to continue its up move. I wouldn't put on my bearish point of view based on the action last Friday, instead i shall watch and monitor for more evidence in the next few days to validate the remaining strength of the rally.
Last Friday's closing was disappointing for many traders and investors as the year 2010 comes to an end. It left traders/investors with a lingering sense of trauma. Those who bought on the last 2 days were now wondering if they should continue to hold, cut loss or take some profits first. Prices have reached the top of the resistance and wasn't able to hold, therefore supply came in and put the unsuspecting public into a mind whirling mode. For next week, I will need to judge how much supply continues to appear and how much follow through develops after last Friday's closing. If Monday's closing is below last Friday's, this will increase my near term bearish view for STI from 30% to 50%. Otherwise, the market will continue its uptrend.
Ronald K
