Euro Crisis-an uphill struggle for STI

In the previous STI outlook, i mentioned that the 3150 point would be a strong resistance, and failure to clear it would strengthen bearish sentiments. The Euro crisis is worsening and the STI responded with 2 gap downs over 11th and 12th. The breakaway gap signals the start of the downleg, and the price on the 8th was a lower high in this wave, compared to the 4th. In short, the momentum has clearly switched to a bearish one and i believe the downside has just started.

In addition, the cluster of candles from 12th to 15th forms a bearish flag, clearly declining in momentum and trading below the moving averages. The projected target is 3024. Traders should hold back on buying for the time being.