STI rebounded after a massacre day on the 23rd May 2011. Today it tried to test the gap down area created between the 20th and 23th May 2011 with good healthy steady volume. It tells me that the bulls are in control for moment. Whatever selling that happened on 23rd May 2011 is now partially recovered by today's buying activity. Observed the blue circled area, I am cognizant of the possible selling in that region. When it reaches that region, I will then look to see how much selling emerge and what are the big sellers planning to do in order to corroborate my view of a possible correction. For those who have cut losses, shorted the market and expect it to tank lower after 23rd May are now deeply chagrined.
I have a strong sixth sense that the market is going to break through the circle blue resistance area based on the buying campaign that the big boys employed since mid February period.
Ronald K
