STI has been trading in the range of 3000 to 3060 for more than a week already. Critical support for the market is currently at 3000 level, it tested it and went below briefly last week before rebounding back up above 3000 support. As long as 3000 remains as the support, market still remain ripe for a rebound back up so it is still possible to accumulate on dips strong blue chips when STI nears 3000 support level. However this is of the view that the support holds which may not be the case also given the uncertainty so always prepare more bullets in case it dips lower. (Don’t bargain hunt all at one shot). Some of the uncertainties and key risks in the markets are: Possibility of a U.S.-led strike against Syria, and U.S. President Barack Obama facing growing pressure at the Group of 20 summit in Russia not to use military force and smaller Fed stimulus due to the underlying strength in the economy (due to strong economic data in the past few weeks). As long as 3000 is a support a rise towards 3060 and 3100 seems likely, a break below 3000 convincingly would open the way to 2930 to 2950 level. 2930 support level was holding really strongly in July and November last year so we can expect a technical rebound from there followed by consolidation so can consider accumulating further from there if 3000 does break down.
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