STI Direction: A REVERSAL BACK DOWN AGAIN after a temp rebound as mentioned this morning !!!! Indeed a "Dead cat bounce"

Can the 2500 hold ultimately?  STI now at 2538…..

Sent: Thursday, January 21, 2016 9:50 AM
Subject: *********** STI Direction: New multi-year low yesterday with a technical rebound today, what levels to watch? now 2582

From previous note on STI issued, we did not see the 2640 and 2600 hold and down it went to a new low yesterday with heavy selling in all markets. We can now expect a temp immediate support at 2550 with resistance for the whole market capped at 2600 then 2640 where were originally the support level. It may start to trade sideways as it stabilizes before a clearer direction. So far, what we have seen over the past 2 weeks is more selling on any temp rebound so we still got to be cautious as today could just be one of those dead cat bounced days. Mid to long term trend still down with 2640 as the resistance for now and indicators are still looking weak. A move below 2550 can see it go lower to the key 2500 where we can expect some good support again on bargain hunting.

Sent: Thursday, January 14, 2016 3:25 PM
Subject: ************* STI Direction: Breakdown below 2700 support for STI. Market still weak below.... STI 2657

From previous note on Monday, we have seen the market weakened further and STI unable maintain above the 2700 key support level. Has stage quite a convincing breakdown even lower today with support at 2640 then 2600 for now. May start to see some bargain hunting again on banks and blue chips near 2600 level but note that any temp technical rebound can be accompanied with more selling bring back its support again with trend still down. Good to be nimble on any long positions and stop loss when needed. Taking MORE CFD sell positions on any temp rebound can be considered ride the downtrend again.