start of a major correction?

Good morning, the STI is now at a critical junction. It gapped down this morning below the key 50% retracement level of 2692. It would be a very bad sign if the STI cannot close above the 2700 level. The next support is 2603.

update on STI

Good morning, just a quick update on STI's trend. Above is a daily chart of the STI. The trend, as indicated by the moving average line in the middle of the main chart, is down. But this is lagging indicator. Momentum is still down slightly, but appears to be leveling off. Key levels to note now is 2745 and 2700. Last Friday, the STI closed at 2745, so it is not clear if the 2745 support is holding. But today, the STI opened lower at 2736, and is unable to break above the 2745 level. Key would be slightly below the 2700 level (which is the 50% retracement level). The major trend would have changed to down if the STI were to close below that level. Between 2700 and 2745, the market is undecided. If the STI can close comfortably above the 2745 level, i think a base would have formed and the market can have the momentum to go up.