The past 4 days' STI action tells me an interesting story. Just when I thought the market was going to have a weak rally, it surprised me with 4 days of continuous up bars. It tells me a scary story, the big sellers are increasing the speed of advance so to distribute more. It's been really tricky and chicanery this past week for me as a whole. I don't see any strong evidence for a rally nor insiders' accounts being filled. The only clue i got was on 6/5/2011, the market actually refused to tank lower but instead reverse and close high. Even so, this doesn't tell me anything. Then on 9/5/2011, the market finally reveal its willingness of a possible continued uptrend.
Today's action tells me a reaction might happen tomorrow. To judge whether if the big sellers are actually selling the market or buying on this uptrend, we shall judge by the amount of supply that present when it happens. I had drawn the midterm uptrend channel as a guide for my trading plan in the coming weeks. The first resistance is 3178 and a bigger resistance is at 3230.
Ronald K
