Today, the STI declined back to near last Friday’s low despite a good showing from the US stock market on Friday night. However the STI is still above the cloud. Last Wednesday’s low also did not moved below the cloud. While the index may have declined just below the Fibonacci 62% correction of the rally from the low of 3070 to the high of 3290, the low while below Fibonacci 62% was still inside the cloud and did not go below the cloud. The STI trend remains bullish. MACD is just below the zero line and while bearish at the moment, both lines could move into the bullish zone above zero line easily.
We remain bullish on the STI index unless price drops below the cloud. If price can stay above the cloud, we see this index going higher to the Fibonacci 127% price projection target at 3360.