Hi there! I am not sure what is going on, but the market sentiment has turned extremely negative. Above is a weekly snapshot of the STI since 2007. The STI has gained 50% since it's low at Oct 08 and Mar 09, and it appears to have hit a major resistance of 2700. The STI has been range bound since Jul 09, trading between 2700 and 2544 for the past 10 weeks. A break below 2544 could see the STI testing 2400, while a break through 2700 could see the STI heading towards 3000 points. Chances are, the STI is going to test the 2544 support first as the momentum is coming down at the moment.
For the more adventurous out there, you could buy on dips and hope the market rebounds off the 2544 level. Cut loss once the STI closes below that level. Take profit when the STI goes close to the 2700 level.
For the more conservative ones, you may want to wait till the momentum shown by the MACD starts to turn up.
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