On last Friday, STI opened at 3108 and fell to a low of 2962 before making a strong comeback and closed at 3130. This has created a "white hammer" in term of candlestick. With a strong surge on Monday and closed above the black candle on last Thursday, we can see a formation which is quite similar to the "Abandon Baby (Bull)". Both white hammer at the bottom and Abandon Bady are bullish reversal signal.
Looks like market has started to settle down but base on Elliot Wave Theory, we will see another downturn before moving up again. I believe the coming downturn may not be as bad unless something worse happened. So it is better to observe the market first until the correction is over, which may take another few weeks.
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