STI's resistance to world market influence

Its been a few weeks since I have started this blog and I am quite happy that it finally reaches 1,000 viewings. I am also grateful for a few of the readers who not only read but also help contribute to improve either my reading and blog presentation. I have been pasting the chart for quite a while already. Today I feel like stopping the chart display for a day, and rather just put in my discussion on STI.

I was watching CNBC before writing the blog for today, US stocks have been coming down further today in response to the comment from the head of Feds. It appears that the interest rate is finally taken a toll on the US market, especially on housing and property. It continues to tumble from the 290+ points fall yesterday and the last I check DJIA was below 11,000 for the first time in months. The interest rate now would be quite a significant influence. I seems like the US Feds wants people to save more money.

Remarkably, STI did not fall as much today as many have thought, it barely scratched 31 points before it rebounded. One reason I can think off is that it fell way before others did ( including DJIA ), right after the election. Just as what TopTrader mentioned, it is at an over sold region. While observing the moves of many stocks today, most of the non STI related stocks did not budge much. It seems to indicates that there are now very few sellers in the market.

Another indication can be seen from the forum. Many weeks ago I am still seeing the word bargain hunting, I am no longer seeing that. In fact many are wary about further drop of the STI and their stocks. With the short term traders off the market. What left are those with holding power. Will STI continue to fall, it might but the volume of trade is already at its minimum and falling down further will be an up-hill task.

While going through the chart of STI, the indicators are showing conflicting messages. With RSI rising up while Stochastic reversing down, both below 50% mark. Again it diplayed another spinning top and a possible morning star. It is highly possible that STI will again move up with the US market down.

I am still optimistic at the moment that STI will be in positive area this week base on the weekly chart reading. If it is going to achieve this, tomorrow is a good day to start.