Other View on STI

Singapore market- Two days ago we stated that the Singapore bourse was
oversold and that the ST Index could rebound from 2350 to 2553 towards
2390-2400. As it turned out the index bottomed out at 2352 and rallied
to a
high of 2395 today. This move represents an exact 50% retracement of
the
earlier decline from 2441. We think the rebound, which was seen as
counter
trend rebound has for the most part run it's course and that the next
move
could be to the downside.
Our estimated downside objective for the ST index is at 2320 and
possibly
towards 2290. At current levels, we would advice readers to pare long
positions and await better entry levels.