above is an end-of-day daily chart of the STI. The STI is surprisingly resilient; we have had 2 triple digit losses in the DOW, but each time, after opening down, the STI recovered rather substantially. It was no different today. After opening down, it rallied hard on news that the China PMI data was better than expected, before selling off again on news that the Eurozone's PMI data was worse than expected. We have traded sideways since October, with support at 3020 and resistance at 3063. Support was only tested once, but resistance has been tested three times. It would appear now that support is strong, and that it is only a matter of time before resistance is broken. Momentum is slowly shifting to the upside, as can be seen by the green bars on the MACD. Longer term trend is still up. So it looks like aggressive investors can buy on dips with tight stops, while more conservative ones can wait for the STI to break out of 3063 (as a confirmation of an uptrend) before going long.
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