Posted on June 10, 2009 - by kevinscully

Hopefully we are seeing the start of a health correction from recent strong gains which will form…

Just back after a short break with the family in Malaysia.

The correction in the Singapore market yesterday should be considered healthy and necessary after recent strong gains which would help the market form a new base before its next move.   Let’s start with where the STI Index can go…..(see charts below) – it looks like the first stop is 2230 and the next 2110.   I think the second level looks more comfortable.   The second chart already shows the start of a correction from a very over-bought position while the MACD shows some loss of momentum…..so for those who missed the rally or who participated toward the tail end, there will be an opportunity to build new positions or to average down in the coming weeks.

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