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STI Index Analysis 19th Feb 2008



Take a look at This Chart...Looks Ugly? This is the STI weekly chart.

We are caught in a very strong downtrend ever since Oct'07 and now we are right at the tip of the trendline resistance. Now seeing the chart, I think there should not be any staunch bulls around.Do not take the rally of the past five days as indication that the market is back.... Its a bear market now and two things we want to be very sure of in a bear market.

Resistances are always very real and strong. Supports are NEVER present.

Investors/Speculators lose their pants trying to pick the bottom or chase running stocks. Do not try to force your opinion on the market. Market is always correct!!!
Right now, all long positions should be sold off for the sake of safety....and we should await further signals from Mr Market before taking long positions again.

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