The situation with STI on Greece

The Greece issue certainly have a huge impact on the Asian market. Probably not because of its exposure to Greece but more its exposure to Europe as a whole.

The market was a gap down since early morning, STI itself was opened 40 points down. I was not really tune to the fundamentals but base on my recent experience, it should have gone back up and closed with only 30 points down. But Greece seems serious enough to pull STI further down ending with close to 60 points below previous closing. That serious-huh?


Fig 1 STI Daily Chart
In my last entry, I mentioned of a long term trendline which STI have not broken eventhough the short term trendline was tested. Well, it is officially broken upon gap down. It is even more interesting that this trendline resisted STI when it tried to move up. It stopped exactly at the trendline!

I think I don't need much explanation on indicators except to say that they are coming down.

Elliott Wave wise, this could well be the C minor wave of either a single counter wave or the minor C of A of a major counter wave, but no matter what, it still have a little more to go before completion. The objective of a swing move is 2,914.

STI is also presently resisted by its 21 days moving average at 2,962 and its trendline with tomorrow projection at 2,965. So far it is being attracted to the negative slope of the Gann Grid and support from Gann Grid is 2,889.

Just a personal thought on this. If STI is moving back up tomorrow, it should be breaking above the trendline and supported by the same line.