Is STI on continuation uptrend?

I was quite positve that STI would be coming down today. I mentioned in my entry last night of the various reason that STI should be coming down. So it was to my surprise that it went up 36 points today. 36 points is quite a large step.

So the market went against my judgement, but then as my teacher said, it is not the market that is wrong, it is me who is in the wrong, because the market is always right. I was wrong in my prediction last night.


Fig 1 DJIA Daily Chart

I think the very thing that make me wrong is the US market. At the time of my prediction, I have ignored the sign from Dow Jones of which the indicators are at the bottom. This is in contrast to the indicators on STI. When I looked at the Dow last night, a question popped into my mind, "how would a rising Dow creates a descending STI?" Well, if it should, it did not manage last night.


fig 2 STI Daily Chart

So what would STI be doing from now? I am not sure, at least for tomorrow. While STI shot up, it is uncertain of its present position, creating a spinning top. Due to its gap up, it is also a potential evening star. In addition, it is resisted at the negative gradient of Gann Grid lines.

While it has penetrated the previous high, the level of penetration is very mild and requires tomorrow to confirm.

My guess is that it will be a retracement tomorrow. If this is the case, we would be seeing yet another reversal downwards. While it has gone up quite a bit today, I still believe that it is on reversal. The only confirmation other wise would be STI moving higher still tomorrow.