Distraction caused by the China-Taiwan-US relations was good?
The recent China-Taiwan news triggered an interesting response in the world. Basically, people are aware that it might turn into a massive disaster but at the same time, many do no expect any real aggression to occur between the 2. On the market front, the STI climbed for 4 days straight before stopping at a horizontal resistance on Friday at closing. Could this be a new distraction engineered to allow the market to look away from the actual financial turmoil around the world? It is hard to say but all we know now is that the dip if it is coming at all, will be coming abruptly and will most likely be legitimated by the new found “crisis”.
STI – Updated Daily Chart
It is clear that the resistance levels last week was broken after Monday’s sellers fail to negotiate...