(Updated 14/2/99) Last week continued to see the correction of STI index towards 1281, which represent 0.382 retracement from 800 to 1580. After touching this strong support, STI managed a strong rebound on Thursday and finally closed at 1354.80 for the week. Due to Chinese New Year's holidays, we will be having a short trading week with only two and a half days to trade. Expect market to be very quite on Monday, with a small downwards bias due to weakness on Friday's Dow Jones performance. However, STI will start to move upwards toward the end of the week, mainly on the continue technical rebound and the pre-budget rally. I think STI will be trading in the range of 1300 to 1400. After next week, we will probably see STI attempt to move above 1425. However, any rally shall be capped below 1450 for the timebeing and that the bigger picture shall remain bearish. You may have noticed that I have make some changes in my wave count, this is mainly due to the short time frame for wave (B) and (C) on my last week's count. On the time frame basis, it looks increasing likely that we may have just completed wave (A) of ((B)) and is now going through wave (B) of ((B)). Unless STI plunge through 1,000 before heading for a new high, this will be a preferred count than last week's count. However, whatever it is, it does not alter the bearish picture in the short term. Alternate count, suggest that we have just completed Wave 5 of Wave (1). A completion of Wave (1) will follow a corrective Wave (2) which will bring the index down towards 1,150 and possible 1,030.
Events To Watch For The Coming Weeks/Months
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