V3Go Market Views

STI closed at day high at yesterday trading with a net gain of 102.88. SIMSCI hit a high of 371.7 and closed at 371.6 during ETS. Based on TSC, STI will be a buy if it trades above 2977. Overall indicators are bullish on STI: William Percentage formed an upside croc, STI closed above 24% K Wave level and STI broke a V3Go Buy Call on yesterday trading. So far, STI is doing a uptrend movement. Since 17 March, STI never saw the low of 2745 and has been steadily forming a higher high.

US market was up with Nasdaq outperforming S&P 500 and Dow. JP Morgan raised its buyout price of Bear Stearns from $2 to $10, gave hope to the trading community. The bank will also acquire 39.5% of Bear Stearns by scooping up 95 million newly issued shares. Bulls went wild in anticipation of another suitor making a higher bid. In addition, better than expected home sales suggested that the financials may have reached a bottom.

Due to the last hour of profit taking on US market, there is a high probability for Asian markets to follow suit before any rally to kick in later in the afternoon. The key will the opening price. STI must stay above 2977 for further upside. The key support for STI will be 2927, which is the previous Day High. STI is expected to find resistance at 2976 level.

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