what can we expect?

based on the daily chart of STI with a 20 day bollinger band applied, the support was established prematurely at 2237. STI closed last friday around about 2270, which gives us a handsome profit of at least 130 points on the STI on the short side. those who were apt to notice the support levels like i've mentioned would have taken at most about 170 points on the short side from 2400. but where do we go from here?

firstly, the 27 day EMA is definitely going flat, possibly indicating a turnaround. we need to verify the downtrend when the 10 day EMA cuts it. STI may hover around this values for the days to come. however, if STI reacts correctly, we can see another day or two of green. possibly look out for exhaustion on the second day, a 2 day rise followed by gapping up and closing down. that should be at levels of around 2310 or so. from there we would need to establish the next targeted support level through the bollinger bands, possibly testing the 2237 support again. we would need the 20 day EMA to turn to establish out next target.

in the mean time, for longer term investors, it sure is a good time to sweep the floor for some bargains. of course, bit by bit :)