Weekly Wrap

For the week, STI dropped another 3.8% or 126 points. closed at 3184.7, do remember 2012 YEAR END CLOSE is at 3167, we are just 18 points away.

US market rebounded with 200 points gain on Friday. It's expected STI should follow as the recent sell-off is overdone. It's obviously to me that the funds are flowing out of Asian market and go back to the US. All the three US indices are green and all the four major Asian indices are in sea of blood.

 

Asian major indices performance over the past three weeks.

 

STI daily chart. the current level 3167( Yr2012 close), 3190(yr 2010 close) and 200MA @3184 together should provide STI a major support. A technical rebound is expected.