The STI went on a free fall since Oct07 (high of 3734) till Oct 08 (low of 1473).
After that huge drop in the STI, however, since Oct 08, the STI has been moving sideways. In fact, from Nov 08 to Jan 09, it has been making higher lows. The bars of the monthly MACD-Histogram has changed from red to green, indicating that the downward momentum of the STI has changed from negative to positive. Does this mean that the STI will rebound soon? No, I am not suggesting that. What the chart seems to indicate is that while there is still much uncertainty going forwards, the selling pressure has certainly eased and that it does appear that there is more upside than downside to the STI.
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