Market Outlook (06/03/10) Is this bull rally for real?

In last week, STI has been swinging from the low of 2749 and finally close at high of 2790 on Friday to mark the FIRST gain in weeks since 8 Feb. The VOL traded is not really exciting but slightly better than the past 2 weeks in Feb.

In the week ahead, there are a few important economic reports which included February's retail sales and most importantly weekly jobless claims. In addition, Greek Prime Minister George Papandreou will be visiting Washington early next week and investors will continue to observe what steps European governments will prepare to help Greece on their debt situation.

Lastly I would like to point out that S & P 500 broke through the resistance of 1130 gaining 1.4% to close @ 1138 on Friday. The US market marked its strongest move of the week after the February employment report showed the loss of 36,000 payrolls which is better than Wall Street's downgraded expectations.

However the VOL on Fri seems pretty LOW for an index that gain 1.4%. In fact this recent rally is supported by LOW VOL which can be quite disturbing (Same as STI). Is this bull for real or are we just taking our last breathe before another pullback?

Important resistance of STI: 2825

Immediate Support of STI: 2700

My sentiment: Although the overall market seems bullish but I would urge investor to be careful. Do monitor STI VOL and hope that its goes up on Monday.

MY TACTIC: No buying/selling. Will cont to monitor VOL and hope for improvement.