STI Wave Count

The research report from DMG Research is very interesting in providing an overall outlook of STI in coming months.

STI closed at 1620 points yesterday and today may bounce up to test 1700 points resistance due to strong gain in U.S. market overnight.

For STI to hit 1391 points on January 2009, a further cut of 300 points in December 2008 alone is required. This represent a potential plunge of 17%.

Not impossible. We probably have to postpone the Christmas shopping spree to Chinese New Year!