Is STI going up or down?

It is some time not a good feeling to find that the stock or index did not go my way, or at least the way that I expected it to go. The performance of the index today is one of them.

I was wary with the way it behaved for the last 2 days. The diminishing volume was alarming as it indicated weakness in the index. However, I was quite confidence in the support level at 2,398. It managed to hold the fall once, I expected it to do the same this time round.

I was surprised to find STI fell through the support level with further penetration to 2,376. This would mean that it is heading for the next level @ 2,352, it did not, at the end of day, it retreated back to above the support level of 2,398. Further more, it kept itself back above the trend line support.

What we have just witness is a false break in the index, it is clear sign of weakness. The index may still go up this round, but it will definitely retest the trendline.

So will it be up or down tomorrow? It is unfortunate that my serive provider broke down today and I do not have the date for analysis. I have to resort to using my secondary source. It is not as comprehensive as my original data but will do for the time being. but without data, I have no chart to attach.

The index chart did no provide the volume for the index, but base on my memory, the volume is definitely lower today. It is a good sign as the volume is now not supporting a down trend, traders are holding on to their stocks.

RSI reversed downward but maintained higher than previous low. If tomorrow is an up-day, I should see it reversing, thereby giving the first sign of divergence, indicating STI moving up again. The Stochastic is more encouraging, it has in fact turned up and started climbing. This give me more confidence that tomorrow is up for STI. Support level still holds @ 2,398 although this round there is an additional trend line support @ 2,404.

My last concern at the moment is the confirmation of the hanging man formed yesterday. It still points to the south. Will the support levels be able to prevent the fall? I am presently betting that they will, but close monitoring is needed and if it crosses 2,398 again, it is time to run.