Straits Times Index: 9 June 2013, Sunday, 3.00pm Singapore Time

Straits Times Index (Chart 1): 

9 June 2013, Sunday, 3.00pm Singapore Time

Straits Times Index (Chart 2): 

9 June 2013, Sunday, 3.00pm Singapore Time

The above attached are the Straits Times Index Technical Analysis. 

All illustrations are as per in the chart.

In Chart 1, the long mid-term support has been broken down. This will now ensure that the selling down will be sustained for at least 1-2 months as a deeper correction. All operational set-ups has been explained in detail as per Chart 1.

Will this correction end up as a start of a new bear market?

It is inconclusive at current point and is unlikely but not impossible that this correction is a start of a new bear market. 

Referring to Chart 2, a new bear market will only be initiated if the 2925-3065 points supporting buy layer cannot hold and the ultimate support of 2925 points breaks down. If this happens, we will then be in the next cycle of bear market.

There are 4 major Financial Centres in the world. As Singapore is one of the four major Financial Centres in the world, the Straits Times Index (STI) is one important indicator to general big market movements worldwide and unlike many indices worldwide, Straits Times Index seldom tell lies or play too much mindgames.

In the mid term, world markets will be on a bearish-biased 1-3 months sell-down mode until STI hits the critical 2925-3065 band before any selling may start to become dry and stop for consolidation (This also means generally in the mid-term that Euro and commodities to go down while USD/USD Index to go up in the major Forex markets).

When 2925-3065 support holds, we will be on the next wave of up-thrust in international financial markets. So will all other international financial markets. If 2925-3065 does not hold, the next bear market has arrived.

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