The past week has been extremely rewarding for those who have bought in the week of 28 Sep 2015 when STI slipped below 2,800. For example, the MSCI All Country World Index had its best weekly rally since 2011. Closer to home, STI jumped 9.5% from the intraday low of 2,740 on 29 Sep 2015 to close at 2,999 on 9 Oct 2015. In retrospect, STI has performed in line with my expectations as follows:

1. In my write-up http://ernest15percent.com/index.php/2015/09/26/ernests-market-outlook-28-sep-15/ posted two weeks ago, I wrote that STI’s break below 2,843 was bearish with a measured technical target of 2,757. It hit 2,757 and touched an intraday low of 2,740 (0.6% away from my measured technical target of 2,757) but closed promptly at 2,788 on the same day.
2. In the above write-up, I also mentioned that the bearish tinge in STI’s chart would be negated ...

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