Last week, we said that "Instead of an "abc" fourth wave correction that we were expecting, it may turn out to be a triangle consolidation." The market did behave in according to our expectation of a triangle formation, and indeed we began to hear more and more analysts came out with the same conclusion towards the end of last week. This had again proved that our prediction is usually ahead of others as per our last week commentary. Last Friday's correction was indeed a golden opportunity to do some bargain hunting, and if you were my customers you would probably have received my advise and made some purchase. With Dow Jones last Friday's close of +136 points and that, 16000 & 12000 looks like a short term bottom for Nikkei and Hang Seng index respectively, we are indeed very close to completing our consolidation. Unless STI breaks 1850, we believe the triangle formation is real, and that we are now very close to the completion before an upsurge towards 2050-2150 level. This could happen probably in the coming week, if not the following week. The next upmove will probably be led by Properties and Banks, while Sesdeq counters will take a breather and consolidate after the recent up surge.

Technically, STI has just completed its impulsive wave 3 and is now in the process of completing wave 4. It is now look highly possible that the alternate A scenario is more likely than the prefered count (please refer to my "Long Term Perspective" site), thought we would like to wait a little while before commit ourselves to it. The decision will probably be make within the next few weeks.

Events To Watch For The Coming Weeks/Month

1. The movement of US stock market and T-bond.
2. The development in Indonesia election.
3. Hang Seng Index movement.
4. Nikkei and JGB movement.
5. The stability of Regional and Singapore currencies (especially Indonesia Ruppiah)
6. Regional stock markets movement.
7. Singapore 3 months Inter-bank rate.