There was nothing much changed after yesterday's close. Again, I am waiting for STI to make a higher high to draw a better picture of possible trend change. With overnight gain of D.J and Nasdaq indices, there should be a chance for index to advance a little bit further. In addition, one of core STI components , Singtel, released result with 10% raise in quarterly profit, which beats expectations. Stochastic is moving in overbought zone, however, this is relatively unimportant as oscillator tends to be stay at extreme zone during treding market.

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Let's have a look at STI (Straits Time Index)ended 01-August-2006. Yup, it managed to stay above moving averages support area after breaking recent downtrend line. STI in fact has made a higher bottom, this is the first thing I am looking for when determining trend change. Now I think, it is interesting to see if it is able to make higher high. With weak closing of U.S markets, Fast stochastics seems to be a little overbought, and STI is reaching recent resistance area, it might need a little bit more strength to go up further.

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