Poising for a technical rebound

From the looks for the Dow Jones chart, it seems that DJIA is poised for a rebound soon. Currently, it is residing on the fibbonacci 23.6% support level. The last 3 candlesticks had a long tails which resemble tweezers bottoms so in my opinion, these factors suggest a rebound should be near soon. The next resistance level will be around 12750.

Dow Jones Industrial Average:


For the chart of the Straits Times Index, it formed a island reversal formation and that signifies a downtrend. Following this, there was a huge gap down and this gap will be acting as a resistance level. Since i expect the DJIA to be rebounding soon, i believe STI will be following suit.

Straits Times Index:


However, both of the intermediate trends for both STI and DJIA are still down. Remember that the subprime issue is not something which can be resolved easily so i believe the coming rally will be still a technical rebound.