Straits Times Index

STI showed a doji today. (yesterday was a close hanging man). I shorted SIMSCI again during the closing time. Although technically you need a confirmation the day after a doji to show 'reversal', i think a correction is on hand for a variety of reasons.

1. Holiday mood ? (Traders dont want to take a position as Wed is a public holiday)
2. Uninspiring corporate results ? (Quite a few companies reported 'below expectations' results, such as China Sky, Advanced Holdings, STX... to name a few).
3. Technical weakness ? (STI near to resistance zone at 2450-2500 and charts indicate weakness in bearish divergence and overbought).

My view is that a possible correction down towards 2420 to 2430 region is on hand in the coming days. A close below 2400-2415 zone would be extremely bearish.