If i view and interpret STI's midterm trend correctly, the above screenshot depicts it all. It is still moving down south where it had not breakout of the long term downtrend yet. Sometimes the market just retaliates and refuses to relinquish even though many symptoms reveal that sellers are already putting out shorts. This is the way it is, the market is all about mind games, if you are able to decipher the minds of the big players, then you have a winning edge.
STI has already reached it long due reaction level at 3130. Should it rally further, the next level is between 3135-3150. I am only looking for shorts, however i know i shouldn't be too bearish or bullish. I believe next week, the market will reveal it's true colors. Either the bulls continue it's upside or the bear will entrench the bull territory.
Ronald K
