The uptrend that began in March at first had very few believers. As it continued, the uptrend gathered followers, until it became quite popular (hitting 7 years high STI 3,549).

But the stock market is huge, and when it turns, it does it slowly, like an ocean-going ship changing its course. It does not turn on a dime.

Now a key question: We are at critical support level 3,450, is this a buying opportunity - or the beginning of something more serious? Let's turn to our charts...

STI Open: 3,465.32

STI High: 3,467.23

STI Low: 3,434.28

STI Close: 3,450.18

Price Change: -12.92

Percentage Change: -0.37%

Total Volume: 1.297 billion

Weekly Chart MACD has ticked down and below zero reference line.

STI sank to 3,434 and bounce back to critical support line 3,450. Watch the 3,390 – 3,410 levels for the next support.

Please be sure to protect profits on long positions with hard stops or trade a smaller size than usual. Maybe half-size, reduce your sails! I sure will be reducing mine.

And if you're comfortable shorting, dust off your list of candidates. In fact, I have been opening shorting position.

Best wishes for the week ahead,

Divergence Trader

The post An Ocean Ship Turning – Weekly Review For 25th May 2015 appeared first on Divergence Trader.