STI

Got this email in my mailbox. I am no expert in elliot wave at the moment so I cannot comment, nor am I endorsing his reading, but here it is anyway. It is clear he is using fibonacci levels to forecast the movement. 1.382, which seems to fail today (confirmation next trading day to see if a rebound may capture it back) else he points to 1.618. I personally feel, there should be interim support at 1.5x.

KE Research Ken Tai on the STI

Yesterday, the US markets made very impressive gains but the initial euphoria was short-lived. Many traders have approached KELIVE RESEARCH for a view on the worst case scenario for the STI if our recent support levels fail.

Basically, if we take Wave-A as the start of the downward from 3906 to 2745

(1161 points), we should be in Wave-C now, which we believe started at 3269 (peak in 5 May 2008). However, this Wave-C is not the same length as Wave-A when the STI fell below 2105. If Wave-C is equal to 1.382x of Wave-A, the STI should have stabilized at 1665. If 1665 fails to hold, we may potentially face 1390 as the next support, the 1.618x of Wave-A.

Regards,

Ken