a look at the STI

Above is an end of day daily chart of the STI. I thought that the STI would come crashing to 2903 after it broke 2976, but surprisingly, 2953 proved to be a rather good support. The STI did close below that for about 3 days, but after holding steady for 2 more days, proceeded to spring up to close to 3000 points. We have closed above 2976 for 2 days, which is a good sign, but now we see it struggling to hit 3000. So what is the big picture? China and US are starting to pickup. I am not too sure about Japan, but its stock market has been rallying hard, so perhaps it also is expected to pickup. EU is in a very bad shape. The bitter medicine that Germany is forcing Greece and Spain to take is obviously not working. Austerity alone is not going to help a dying economy. Let us hope that wisdom will prevail amongst the EU leaders. For the STI, the trend has turned down since it made a lower low 7 days ago. We are now bouncing up towards resistance at around 3020 where it may resume its downtrend.