STI 07 Feb 2014

STI broke the psychological support at the 3000 level and even broke the pivot low at 2990. It hit a low  of 2953 before it sort of followed the worldwide market rebound and managed to close above 3000 points again. Sort of hanging on there for the time being. The selldown was sharp and quick, and suddenly the folks realized that it was overdone and bargain hunters have come in to support the market.

On the weekly chart, STI has broke the pivot support, bounced off its low, and managed to close as a hammer. This is accompanied by higher volume. Seems like the rebound might continue for some time?

Anyway, the strong support is at the 2930 level. It will take a lot of fear and volume to break that level. I wonder what will be the given reasons should that happens.