Aug 17, TA for STI (A dead Cat Bounce?)

TA for STI, DJI, S&P, HSI Comparison Chart

A "Dead Cat Bouncing" or a "Flag Down" signal? Indices around the regions show a technical rebound with decreasing volume - look carefully at the arrow. These are signs of Bearish pattern formation. A good rebound should be gaining momentum with volume and not the reverse. STI has a nice hammer at the support (indicate a rebound) but today, it finished with a nice Black Engulfing (indicate a reverse). If you are on a LONG position. Watchout for STI 2793 support, if broken - a prolong "wave C" down trend might be forming.