In this current super bullish environment where the bulls runs rampant and bears of any kind nearly wiped out, it's takes a brave bear to say the market is due for a correction. Looking at this tradeplan which has served this blog for the last 6 months with distinction. This blog can't help but say that STI is due for a correction in the near term. STI nearest support is at 3490, a break below this level will bring the index to 3465 ,3425 and 3395. The current bull market is undermined by the successful passage of the US reformed tax, synchronized global GDP growth, low inflation and a depressed USD. This week investor need to watch the PPI and CPI figures coming out of US on Thursday and Friday. Analyst is not expecting any increase in the figures but this blog believes that with the tight job market and the rally in commodity prices, it is only a matter of time inflation will surface to jolt the bull.
All posts and charts are for educational and illustration purposes only
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