Trend: Down

Last week, STI followed Japan plunge and broke its 3000 support. Repeated bad news gave it litttle chance to rebound. Will this trend continue or will STI stage a rebound this week?

The waves says STI to go down to the next support level at 2870. From this level, it might stage a rebound. The rebound's resistance is at 3000. Problem at Japan and ME are still the wild cards that can bring disruption to STI movement. Intermediate traders may like to hold short from last week but watch the strength of the rebound at support level. Short term traders may like to stay sideline.