STI update

The STI recovered strongly today even though US markets were weak last night. The undertone is firm and underwriters would want the buoyant mood to continue so that they can launch the IPOs. Many companies are trying to catch this window and 2 business trusts have lodged their prospectus with SGX in recent days. STI continues to look healthy and may test the 3,000-3,300 range in the coming days. A convincing break above 3,300 will be bullish as it has failed to cross that in the previous few attempts. Having said that, the resistance is a strong one. Traders may want to tighten their stops as the STI runs up.