Now that STI has jumped up quite nicely, led by buying in big caps/index
linked stocks, much of the bearish views have to be discounted already. In
fact, the sharp reversal from a bearish breakdown when it went below 1670,
to a bullish V-shape bottom at 1643, is a GOOD SIGN of a significant bottom
at 1643. See attached chart.
The downward momentum has been lost. A new up trend has started from 1643,
especially since it is able to trade above 1702 today (It will be better if
STI can close above 1702).
Conclusion: Market has turned around from bearish to bullish, possibly for
the next 5-6 weeks. Target is above the 1805 recent high, possibly 1900 by
Jan04.
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