The fun has just begun.....

While writing my last entry, I was dead tired and you know that it is very difficult to think straight and express yourselves. Nevertheless, I wrote something without adding on the pictures. Last night, the indicators were all down so probably indicates a down day today. Even so, I did not expect much from STI today.



Fig. 1 STI Daily Chart

I was into a great surprise to see a 40 points down for STI on opening. Of course it was due to overnight fall of the Dow (150 point smay be?. In fact, it was more than that. The world was tumbling, I noted one forumer declared that he was really in panic mode because he was holdeing a few penny stocks and as usual there are "advisors" telling him to hold on to the losing counters while cash in the profitable ones for cash (idiots do that).



Fig 2 Dow Jones Index

Anyway, I have cleared all my counters weeks ago and the stocks have been quite unattractive recently that I have chosen to sit on the side line waiting for something to happen. So only the STI marginally interests me.

It was actually quite remarkable, STI recovered at the end of the day although still falling short of touching the candle bar of previous day. This makes me wonder,"is it a good thing?"

If I am t catagorise, the best I can put is a "on neck" structure base on candelstick analysis, an indication of continuation, and in this case, "down". The only problem is that it has not even touched the neck of previous day low. There is a clear gap. If my measurement is right, the gap will lead STI to 2,572. STI is still not out of the woods yet.

The stocks I came out from are all in the red. Fuyu for example reached SGD0.095 with a gap down. It is also a foregone conclusion now that Aztech is going down, I am temperorily suspending my interest on this counter.

If it is a continuation, I will have to bet that STI will continue its journey down south. Support levels are 2,576, 2,54 and 2,521.