 (Updated 05/09/99)  N.B. Above Chart is abstracted from Metastock Program On last week commentary, we said "While we believe the rally is certainly on, but a pull back in the early part of next week towards 2115-2080 remain quite possible. However, any pull back correction should be view as an opportunity to buy then to cut loss." The pull back did perform in according to our expectation and had nicely covered the gap at 2088, but we did not expect the pull back to take up the whole of last week (we were expecting a first two days of pulling back prior to an up-move). The last three trading days of last week were somehow disappointing, and the market had simply lost the interest to performance. Although we were a bit surprise on the market movement, we still think that a rally should resume very soon. Judging from last Friday's Dow Jones outstanding performance, we believe it could have a significant impact to our market in the coming week. Historical statistic had shown that, if the last day of trading prior to US Labor day is an up day, then it had a good chance of continue rally for the week after the Labor day holiday. With this in mind and a better performance of T-bond last Friday, these may provide a good reason to kick start our impulsive wave 3 of Wave 5 for the coming week. If this is true, then our last week's prediction is only three days earlier than the actual event. For next week the critical level to watch for the bulls, is at the resistance level of 2160. If STI manage to break this level convincingly on high volume, we may be heading for a new high very soon. However, if STI fail to break above that level and heading south towards 1980 (the last defend) and break that level, we may be heading for trouble with more severe correction in the card. Anyway, for the timebeing the odd is still favor for an up-move. As for Sesdeq, it needs to break above 160 to resume it up-move towards 182 and possible higher, while a strong support may come at 143-145 level. For individual sectors, we think Finance and Electronic industries will outperform the others and may be the leading indicators to watch for the bulls. Technically, STI has completed its wave (4) and is now entering into wave (5). If our wave count is correct and that the bull market remains intact, then we may have just completed the wave 2 and is about to enter wave 3 of wave (5). As such, investors should take this opportunity to participate in the coming rally. The line L shall remain our last defend for the bull market. It seems that the preferred count in our "Long Term Perspective" site remains to be the most likely case that is going to happen.
Events To Watch For The Coming Weeks/Month
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