Grr...This morning's STI chart really confused me. Down day on high volume means that the trend is very likely to continue. So i was very puzzled by the little rally we are seeing across Asian markets now. I had another look at the STI daily charts and i was a little comforted that the huge volume i saw this morning was some data error.
Yesterday's down day was on light volume. Unpleasant for those caught on the wrong side of the market, but it means that people are taking profit; not selling down. From what i can see at mid-day, there seems to be good support at 1676. No doubt the STI closed below that yesterday, but it bounced off that level today and appears to be holding well. MACD and stochastics are both declining, so what to make of them? Well, the STI, based on the weekly chart is still on an uptrend, but looks like is taking a breather.
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