STI 14 Feb 2014

This is the STI chart. Are you as surprised as I am that the index managed to break the support-turned-resistance level @ 3025 region? I had thought that was how far the index will throw before it will fail again. Hence my rationale for shorting 3 stocks this week. However, the US market and regional markets had other ideas, and continue to make high or throwback further.

It made me waver in my opinion. What I fear now is that this rebound will continue for a few weeks, until the bears are being short squeezed. Perhaps this will really be the last wave to lure the buyers in, plus squeeze the bears at the same time, before all hell break loose. Or, it will be an indication of what to expect for the year ahead... choppy days, and being bound in a ranging market, with the support and resistance preventing any breaks, on the up, or down sides. This is what I fear most, that the market is not directional!

Anyway, as long as the STI does not break 3250 level, I am of the opinion that the bear market is waiting to be triggered. No break 3250, no bull market for me. Couple of resistances along the way till the STI index can come to test the 3250 levels. I hope I don't have to face the prospect of 3250 being broken! To me, now is the technical rebound for the short term period. Mid term, and long term wise, it is still a bear market to me.