The market crept at a low after it gapped lower in the morning. It finished at its lowest in the past 8 sessions at 3042.96. This followed Friday's drop in the US markets.
A 6-month chart of the STI shows a downtrend that would probably find its way down to around 2800 points. No fret here. A range market seems to be highly probable, unless the market breaks its support of around 2750. If the Bear is in, it shall be slamming the market below its support.
Looking on the bright side, buyers can look forward to another buy session coming soon in May. Technically, from a wave principle perspective, this could be the last bump in the Bear trend. There is also a good chance that Leather (or Beef) shall be in vogue thereafter and last for a good few months for us, small fries, to surf on a wave.
In contrast to employment trends, the stock markets are leading economic indicators. Fundamentally in the news, the US expects to pull out from this momentary recession in the second half. This positive sentiment may well bring a ray of hope to the markets to fulfill this self-fulling prophesy.
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