Sunday, January 31, 2010
STI- looking bearish
STI is currently at 2745, just under 100 day Moving-Average of 2751. Next 2 weeks will be very important for STI. Failure to recapture the 100 day MA soon could lead to even more downside. Look for support at 2710 and 2660. A weak rebound might happen next week.
Also a bearish crossover of the 34 day EMA over the 13 day EMA (both fibonacci numbers) was recently seen on the STI on 27 Jan 2010. The last time this happened was on 15 Jan 2009 and the STI subsequently declined by 15%. This does not look good in the short-term for the STI.