STI - an update

Hi there! Here is the daily chart of the STI. The value of the index has rebounded off its support of 2223 and closed just below its moving average line. The MACD has stopped falling and has leveled, but the MACD histogram has started to turn up. The moving average line is still flat. Overall, the overall market as represented by the STI is now sideways. The close of the STI on Friday off its high is not that positive. Perhaps traders prefer to take profit from the three-day run up and before the weekend. I think its best to stay in the sidelines until the trend is more firm.

update on STI

Hi there. It has been about a month since my last update. The outlook based on STI's daily chart is not so good. Signs of trouble came when the MACD started to fall at about 11 May 09. However, a few days later, it managed to gap up and prety much stayed above the 2223 level since then. The negative signs are firstly, the down trend of the MACD, secondly, the index is below the moving average of it Bollinger Band and thirdly, the slope of the moving average is flattening. One plus point is that the STI managed to bounce off support at 2223. I think it would be best to stay aside for now and see where the STI goes during the following week. If it manages to turn around and to close above its moving average, that would be good. If the MACD turns around and cuts the blue line on its way up, even better; that would be the signal that the uptrend has resumed.