First the good news. The STI Index has broken passed the strong psychological resistance of 3,400, as well as 3,450. This voids the possibility of the Head and shoulders formation (Hooray!!!). However ....(Darn it!!!) the possibility of a double top cannot be ruled out as yet. We should continue to monitor the index closely. Until a new uptrend has being established, we recommend short term trading, with the practice of tight stop loss discipline. 
The STI rally can be managed using the CBL or the ATR2x. So far there has not been a close below these two trailing stops since the pivot point low established on 17 Aug 2007. Using GMMA we are seeing a breakout happening with the STI. The long term GMMAs have turned upwards and have compressed fully. In the days ahead, we hope to see further strength of the breakout through a full reversal followed by expansion of the long term GMMAs. This can only happen if any profit taking by short term traders are absorbed by other market participants such as longer term investors. We will be looking out for the CBL as well as ATR2x to hold. Stay tune for further developments. 
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