I have not been up-dating much on this blog lately, partly because I am troubled at work. The projects quantity are getting low and there is no venue to bring in new projects from my originally intended source.I am in fact in process of restrategising my team's formation and converting R & D into Marketing. Good thing is that most of my team is willing to work with me to get new projects in.

The other part of my hessitation is mainly because I am in doubt of the present market situation.STI has been going up, but it continues to trade in a very tight band everyday, even after gapping up in the morning.

The gapping is mainly due to influence from over night market performance of Dow Jones. Trading within a tight band on the other hand signifies a lack of traders participation. Many are on the side lines and I think they are not convinced of the market neither.

Today for example has seen Government announcing a GDP growth of 13-15%. This is supposed to be GREAT news and yet it still fail to excite the market. Something is wrong somewhere, I just don't quite pin point the location.


Fig 1 STI Daily Chart

From the chart of STI, it can be seen that both indicators are very toppish. While RSI still wanting to climb higher, Stochastic has already started falling. STI has climbed just above the resistance of 2,947 and ended up higher at 2,952. The next level of resistance would probably be at 3,037. Support wise I refer to the 21 days moving average at 2,870.