STI

The Straits Time Index was moving higher and higher with slight pullback. With every pullback, investors/traders rushed in to buy at dip. I felt a bit uneasy in doing so as the STI was forming a bearish flag.

From the above chart, the STI channel was narrowing in a bearish manner. The sentiment of the market was bullish toward the end of this year. I would like to side the bulls but at current state, STI may face a pullback to the lower channel. The PPO was at the 'overbought' condition, anytime may signal a 'sell'. A break of the lower channel will signal a correction ahead. Just be extra cautious if you are a bull at this moment.