STI Limits

After the "shocking" plunge because of SSEC (not like the news report about profit taking) , it seems that STI is recovering and regaining the lost 43 points from yesterday. seems like the correction is not coming as many has expected. In fact many on forum was silenced after the roller coaster ride yesterday. In addtion, I read the Evening News Paper today with experts coming out to say that the Bull market is long from over.



So one might question, when exactly will the correction be coming?

Fig 1 STI Weekly chart

Fig 1 show the STI weekly chart, base on candle stick pattern, it is creating the possibility of the three white soldiers. This means a continuation, that is if tomorrow's maintain relatively stagnant. If tomorrow STI make a full correction to alevel close to 2,542, then the three white soldiers failed and would likely indicate a reversal.

While saying that, base on a swing move pattern, STI is likely to reach at least 2,731. A resistance is visible at 2,751 and the index would be meeting a resistive Gann line. There is a high chance that that would be the point where STI would correct.

On a side note, the revelation from the "experts" today worries me, because there is a high chance that experts might get it wrong. Well, not that they are wrong, the bull is still there. It is just that their appearance most likely cause the market to go the other way....earlier.