STI forming a channel resistance breakout

Actually the above title is not surprising. Like what i mentioned in my previous posts, if Dow Jones fails to break it's channel resistance, there is no way STI will break theirs. So DJIA has broke out of it's channel resistance so thus, it is only natural for STI to broke out of their channel resistance.

Today's closing was quite good. Opening was by the retailers since STI increase quite significantly at the opening and only increase slightly towards the end of the day. Volume done was quite significant though not that heavy. Whether this will translate to the next bull run, i am not sure though the breakout of the channel resistance is quite a piece of good news. Next technical signal for uptrend of the index will be to look out for a higher high and a higher low to be formed before i will go long.

My opinion is that since all bad news have been released and has been discounted in the charts, this shld be the end of the correction unless more new bad news is being released. However, time and time again, opinions can be wrong and the market is always right so i will just follow the market. It is almost impossible to try to catch the bottom so i am in no hurry to catch the bottom. I will be keeping my fingers crossed. We shall see whether a higher high and a higher low will be formed in the next 2 weeks.

Straits Times Index: