I saw a big gap in STI from 2618 to 2581. They say gaps will be covered. The psychology behind gaps was there are stuck traders in that range and price will test and cover the gap.Also, the gap could have exhausted the selling. When selling dries up, buying will occur. For market reversal pattern, we are still in the early stage, watch the possible formationof double top or head and shoulder. That will be when you should open a shares borrowing accountlike CFD or SBL account to trade the downside.
If market really reverses and turns bearish, those people who bought funds recently will cry. I had heard so many people rejoicing how well their funds had performed. But they didn't realise funds are highly related to equities and by buying in recent times, they are buying at highs. Anyway, there are still many people out of the market hence no la, big reversal not yet. Let's watch on.
I would be looking at the following stocks for signs of reversal.
GrowMoney QuickPick
MediaRing
Federal
China Essence
DataCraft
LMA
