I know not why I am sad.....(Antonio, Merchant of Venice)

Today I have decided not to paste any chart on ny entry. Seriously it is rather depressing looking at the chart right now, not that I am on the wrong side of the market. In fact I still think that I am on the right. Further more it does not matter if I am on the wrong side, as long as I correct myself early enough.

STI has indeed crossed 2,707, a level which I considered important because it was the previous high of STI. My friend SMS me telling me that the market has changed. Further to that, the newspaper continued to sell the story that the worst is over with all data shows a positive market move. So why am I depressed?

The main problem is that the indicators(RSI and Stochastic) of higher time frame is actually coming down. It should be noted that these are leading indicators, they are to me fortune tellers. The indicators displayed divergence to STI's move and have continued their downward movements.

Another thing that I see is the shooting star on formed STI the week it broke 2,707. I can't qualify it as an evening start yet because I need this week's bar or confirmation. But it is hihgly potential to confirm the direction, especially it is testing a joint resistance of Wedge envelop and horizontal level at 2,751.

So base on the set up I see, there is a very high potential of reversal eventhough STI went up strongly.

One last thing, with so much publicity on market improving, won't a contrarion be worrying should he be in the market? I mean is there a need to yell so loudly that the "WORST IS OVER"? The more positive note sent out from the mass media, the more I smell a rat in the whole thing. This is especially so from the headlines of Friday's Straits Times. The title mentioned strong rebound on world indices and they showed all the charts of recent movements. What I saw was that most charts were rounding off the tops instead of "rocketing" up (a term I learned from Channel News Asia forum, people just like the stocks to rocket). Seriously, a little too hard to accept?