Trend: Sideway.
Last week, we were spot on. STI gained some ground in the initial week but quickly gave way as the week progress and drop back to where it started. So with the catastrophe in Japan on Friday, what can we expect this week?
Earthquake in Japan + problem in ME + down grading of Spain in EU does not equal to market collapse. According to the charts, we could even see some strength in the first part of the week. Do not be attracted by the resilience but use it as an windows to reduce your exposure to the market. This is because the market is getting fragile after being battered by the 3 issues mentioned. Intermediate traders may like hold short at resistance. Short term traders may like to buy on dips in early part of the week and sell on rebound.
