Last week was a very bad week worldwide. The market's reaction to the news is more important than the news themselves.

Rising GDP, falling unemployment reports so far have been positive. But at each of them the market accelerated down.

FOMC meeting is on Tuesday & Wednesday (U.S time).

The markets hate uncertainty more than anything else - and now an accumulation of uncertainties worldwide is challenging Mr. Bull's happy-go-lucky-one-way-up attitude.

Let’s us take a look at our charts….

STI Open: 3,395.36

Week High: 3,416.39

Week Low: 3,357.11

STI Closed: 3,362.77

Price Change: -54.74

Percentage change: -1.6%

Total Volume: 1.216 billion

From the STI charts, the weekly impulse system is red and daily impulse system is red. Weekly MACD histogram is still ticking down and daily MACD histogram tracing more bearish.

As you can see at the right edge, the market is nowhere near completing such a set at this time. This suggests more damage ahead.

Watch the 3,370 level as support next week, a breakdown of 3,370 levels support will likely lead to a test of 3,350 levels.

In summary:

Last week slide caused severe technical damage across the board. Undoubtedly, some bargain hunters will jump in. Is this a good time to buy?

Unfortunately I have not found my crystal ball. Until I find it, I will continue to make action plans based on what the market does and then react accordingly.

Best wishes for the week ahead,

Divergence Trader

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