Singapore Market

ST Index could have ended a five wave structure from 2190. Regional
markets
show signs of trend deterioration

In our recent mails, we stated that the ST Index was in the terminal
stages
of a wave 5 move and recommended reducing exposure to high beta stocks
and
switching defensive high yielding stocks. Today's price action appears
to
mark a swift reversal. The ST index briefly rallied to 2620 probably
due to
the expiry of Simsci futures and then quicky corrected. On Wednesday,
we
stated that we expected the ST index to rise marginally above 2605 and
then
quickly correct back down. The index has exactly done that. We have
attached 2 charts outlining the wave patterns on the ST index for
readers.

We think that an impulsive 5 wave structure from 2190 has ended at 2620
and
the index could retrce back towards 2430 in the coming weeks. A break
below recent low of 2470 would strengthen the view. We are witnessing
similar signs of trend deteriorationon in regional markets. In Japan,
the
Nikkei shows a double top formation with critical support at 15780
after
failing to retrace past 62% of recent fall. The index has so far
corrected
by 300 odd points and the risk of a break below 15780 is very high. In
HongKong, the HSI has corrected by 300 points breaking below a prior
low.
All in all, we think that regional markets show signs of trend
deterioration and a bear trend could be looming.


(See attached file: stiwave count.jpg)(See attached file: STI60min.jpg)
Best Regards

K Ajith

64195411