The 21-day RSI has turned up at its 33 level causing a positive divergence between STI and momentum. Stochastics is turning up after a double bottom and a positive divergence with the index. ADX has turned down, and the DIs are poised to turn positive. This indicator suggests that secondary decline is over for the time being.
Short-term indicators turn up
The rebound is likely to meet with some resistance as it tests the 50-day moving average, currently at 3,233. It needs to move above this level before testing a more substantial resistance area at 3,244.
Just to recap, on Sept 11, the index made a low of 3,102, and it subsequenty rebounded. The relief rally is likely to be temporary. Long-term indicators are stil decining, and the current rally is likely to be a temporary rallly.
