SG Market recap 01-August-2006

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.