I hope everyone is enjoying the long weekend. It has been long time since I wrote my last STI weekly update – I’ve been crazy busy. I'm running around with the kids, trading, students, It's really been non-stop.

Anyway, It is good to be back writing!

As we prepare to deal with the market in the coming week, let’s take a look at our charts…

STI Open: 2,905.49

STI High: 2,906.26

STI Low: 2,840.24

STI CLosed: 2,847.39

Price Changed: -59.41

Percentage Changed: -2.04%

As a trader, we learned to live with uncertainty and make decisions in the system of uncertainty. All successful traders make decisions without waiting for complete clarity. Because if you are going to wait for the complete clarity, you will have to work with last year’s charts.

While weekly chart MACD histogram is still uptrend but daily MACD histogram is ticking down. To me, the current combo of market signals looks more bearish than bullish.

A combo of a bearish divergence and a false breakout is one of the strongest signals in technical analysis. This market is walking on very thin ice, and I think I hear it cracking.

Don’t get me wrong – I think the market is at a very dangerous stage, skating on thin ice. I’m just not sure that the ice supporting the market will break up this week…

Best wishes for the week ahead. Now, more than ever, is the time to be sharp and alert, harvest your profits and mercilessly take a knife to small losses before they have chance to grow.

Divergence Trader

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