I have not written market analysis for a while because the situation is too volatile to track on a daily basis. Just when you think oil has taken a beating, it surged back to the fore but before the ink has dried, it beat a hasty retreat again the very next day.
With the barrage of bad news globally (credit troubles, lower oil inventories than expected, China increasing bank reserves, etc), bears have a field day over the past week, and the Dow Jones have sustained a severe battering.
It is already getting close to March lows of 11800 and if it goes down any further, a technical rebound is on the way. Whatever adjustments which needs to be factored in has already been done. At this resistance level, there is strong immunity to bad news. In the short term, the market will trend upwards. And retails sales are looking good, by the way.
Coupled with rallies in global stock market for consecutive days, I believe Dow Jones and the ST Index could recover lost ground.
STI recovered yesterday from a loss of over 60 points to end 3000 points. The resistance level of 2980 held up well and I remain optimistic over the next few days.