Back on 19th April when we posted regarding the Straits Times Index (STI) we were looking for a correction to start. Well it went down 21 points and start to show strength again. Not much of a correction eh.
Now for the first trading day in May it has broken that 3190 horizontal resistance and marched on to 3215 which is another resistance. If it manage to overcome that we might see it cover the gap and move towards 3249 area. Well, admittedly we were hoping for some sort of correction to come so that we can look for lower entry but market doesn’t seem to present that yet.
The index was being pushed up mainly by our three local banks so it’s not a broad based rally which is a little concern for us. We’ll be going into May being a little careful and remember to be flexible. Though the saying sell and go away in may is on the cards we would still want to see the charts before making a move.
French election, korean tension could be some news that might hurt the market.