STI Consolidates On Speculations

Since the subprime alert during July 07, we have seen the STI achieve a new level of volatility. While the Index has succesfully computed a new high, much has to be asked abt the current market sentiment. If we we to collectively correlate the price movements of the DJIA against the STI, one could note that both our markets have actually been moving in tandem.

The correlation suggests that the weakening trend in DJIA will likely affect future prices of the STI. At the current moment, one could digress that the index is currently slated in a very consolidative mood. Events unfolding in the US for the next few weeks would determine the indicative direction our STI would make.

For now, i'd say oscillation plays between zones 3300 - 3600 would be the best bet if one has desires to speculate.