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Big Week Ahead ( 25th Feb to 29th Feb)



STI has been stucked in a trading range of 3000 to 3120 in the past 8 trading sessions. Any break out of this range will very likely be very significant. A close below the 3000 mark will lead STI to test the 2800 region again while a close above 3120 will likely spur the market very bullishly.

Right now, the main trendline is still down. The 50 day moving average is still moving downwards but we had a "washout" day on the 22nd of Jan so maybe this is the bottom but this should not be a time to empty your banks to buy "cheap" stocks yet. The main trend is still down and it will take a lot more work to come out of this bear market.


The week ahead is fairly packed as we have expectations that the bond insurers in the US will get bailed out this week.

Monday : US Home Sales Report
Tuesday : Producer Price Index and Consumer Sentiment Report
Wednesday : Bernanke will speak to the Congress.

The markets are expecting another 50 basis points cut for the FOMC meeting on March 18.

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