The headlines spelled doom for Greece 2 weeks ago, but as swiftly as they appeared, they have now been replaced with fresh optimism. In the post last fortnight, i picked up a possible rebound, but was not sure where it would lead to. The STI is approaching multiple resistance around the 3140-3150 region, and that could be the turning point for this leg. The past performances in Nov 2010, January and March have turned out to be peaks, with the exception of April. Using the momentum indicators, that is 3/4 hit rate. The emphasis however, remains on the price action and it should be closely watched.

If the index trades above 3150 on high volume, i will take that as a failed short setup and that confirms a bull run from that point. However, a weak performance, defined as multiple closings below day opening prices/ reversal day bar will ......