Straits Times Index is ready for a rebound, but bearishness is likely to continue after that.

It felt like STI jumped off the cliff last week as concerns of “fiscal cliff” haunted the market during the week. STI started the week by attempting to stay above the 3000 support level before going for Deepavali holidays on Tuesday. Bearish movement by DJI and HSI on Tuesday had caused STI to gap down strongly on Wednesday as STI attempted to catch up with what was lost. STI went for a “freefall” on Thursday and immediately tested the support at 2945 level. There were attempts to break this level on Friday but STI was able to recover from as low as 2931 level before ending at 2945 level. STI was down 63.93pts for the week. Last Friday night, DJI was able to end its losing streak by closing 45.93pts higher. Is ...