(Updated 27/12/98)

N.B. Above Chart is abstracted from Metastock Program

Expect market to continue on its sideways consolidation, with a bias towards drifting lower. The STI support at 1320 should prove to be strong enough to contain the downward correction. Only a break below 1320 will open up a bigger correction towards 1250-1180 level. Market will be quite towards New Year, with force selling occupied most of the activities in the beginning of the week.

From the wave structure analysis, we are most likely undergoing  a triangle Wave B. However, if STI breaks below 1320, we could be undergoing a more severe correction towards 1250-1180 region. Alternatively, we may label the current low as wave c of Wave B, but the probability is fairly low due to the low volume.

Wishing all readers: Happy New Year and Lucky 1999

Support 1320, 1270-1250, 1180, 1160-1140, 1080, 980, 880
Resistance 1430-1450, 1500, 1550, 1700

Events To Watch For The Coming Weeks/Months

  1. The impeachment development on US President Bill Clinton..
  2. The movement of US stock market.
  3. The stability of Regional and Singapore currencies
  4. Regional stock markets movement.
  5. Singapore 3 months Inter-bank rate.
  6. The effect on Euro.