Above is a weekly chart of the STI for a longer term perspective of the STI's trend. Since the double bottom in late 2008/early 2009, the STI has had a pretty decent run up until late 2010, when the STI traced out a double top. From the weekly chart, it does seem like the STI has made another double bottom; one in July and another in November 2011. The stock market has roared up with a vengeance and not surprisingly, most retail investors are not jumping in as all they read in the newspapers are stories of gloom and doom. It also does not help that 2011 has been a down year and that each promising rally has been beaten down by the bears time and time again. But now we have hit a major resistance of the previous pivot high of about 2900 points. I expect some correction here but i see this as a healthy correction and a good time to accumulate blue chip stocks.
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