(Updated 29/11/98)

N.B. Above Chart is abstracted from Metastock Program

As per last week commentary, STI index did break through the resistance at 1360 and moved towards 1400s.

Ideally, the index needs to surge up one more time towards 1430-1450, with a possible of 1500? to complete the wave structure for a near term top. However, a drop below 1350-1365 will signal a correction of a bigger degree is unfolding. A larger degree of correction will push index towards 1250 and possible lower.

There will be little domestic events to trigger any big movement for STI this week, and that it will be very much dependent on Dow Jones and regional indexes movement. For investors who are still holding positions, it is advisable to sell on rally. And for investors who have no positions, my advise is to continue be patience while waiting a bigger correction to unfold.

Events To Watch For The Coming Weeks/Months

1. The movement of US stock market.
2. The stability of Regional and Singapore currencies
3. Regional stock markets movement.