The Hang Man.....

Okay, tonight writing is a short one, partly because I have dead tired.

I was rather bullish earlier on STI because I thought that "well, the correction should be over and it continues on its journey." Just when I feel a little better, this happens on STI today.



Fig 1 STI Daily chart

The latest bar signifies a dragonfly Doji, more over it gaps up creating a hanging man pattern. Certainly the name does not sound good. The Dragonfly Doji itself most of the time is a strong indication of changing trend, worse still a hanging man. There is still a need for confirmation though. Should tomorrow opens lower and not recovering, we should be seeing some more bearish tendency days ahead (if not weeks).

Looking at the pattern, it might as well be forming the right shoulder of reverse head and shoulder formation, that is if my original prediction of 2,809 still holds. otherwise, the next support likely to be 2,417. That will really be bad because it will have broken the longer term trend line, meaning BEAR IS IN!!!!!