Above is a daily end of day chart of the STI. Yesterday, the STI staged a massive rally that took it pass the major pivot high of 2791. There was a pull back today, as participants took profit. The STI managed to stay above 2791, which is a good sign. There is quite a major change in trend now. After making a series of lower lows last yesr, the STI has just managed to make a higher yesterday. The medium term trend is now up, while the longer term trend is still down. Momentum is strongly on the up side. This appears to be a good time to load up on stocks. However, most investors will be wary of going long now after experiencing the very severe down trend from late October last year. I do wish to point out that despite the downgrade of sovereign bonds in many EU countries, the market refused to go down. The US markets have been in a strong uptrend for some time already, and HSI is also turning up.
The bulls are starting to re-exert themselves in the market.
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