Disappointment to many

I was reading the CNA forum today, with not much mood for participation. For one thing, I am rushing to complete a project. I only manage to have a glimpse at the price movement on my computer screen. Secondly, I was not in a very good mood because STI went south. I was actually bullish until this morning.

It seems like there are a lot of disappointment on both STI and performance of the stocks that they are in position. The atmosphere became even more intense when STI hit 2,349. I can virtually sense the fear in people for STI to drop even further. I was quite amaze that it was eventually supported at 2,355, a resistance level that I have previously mentioned, many times.

Looking at STI, I am suppose to accept that the bear has set in since now it is quite clear that it has moved away from the trend line resistance, heading south. However, I am a little stubborn on this and insist to wait for the crossing of 55 against 89 days EMA ( grey and white line ). Since I have accepted this system, I have to follow. However, I believe it may not take long since the recent moves have been very davestating.

It is very easy to see how well the STI is supported and stopping where it should be, reason? These are areas where STI has stopped in the past. As rule 3 of TA mentioned that history repeats itself. It has to do so. However, as STI move downward, I find that the volume continues to shrink. In fact there are barely a few trades happened when I monitor the movements.

It is also interesting to note that the index stocks along with some high profile stocks were the ones being hammered down, there were little influence on the small caps. In fact most of my portfolio are in the green as what I have recorded from my reading yesterday.

So will STI be down tomorrow? It is difficult to say when the indicators are slightly conflicting. I would feel a weak but well supported STI above the level of 2,350-2,355. The indicators are still pointing downward to tendency for pressure to prevent it from coming up. If it is going higher, I believe 2,398 will be a resistance this time round. Small cap stocks may quietly climb upwards. If it breaks down further, next support level at 2,260-2270.