STI broke resistance at 3000 helped by good GDP results!

On 14/Apr, Singapore shares ended near a two-year high Wednesday, boosted by better-than-expected first quarter economic data. 

STI broke the psychological resistance level of 3,000 points, ended 48.14 points (1.6%) higher at 3019.74 points with 2.56 billion shares traded compared with 2.02 billion Tuesday. In the broader market, gainers outnumbered losers 441 to 175.  Overall today has been a broad based rally though the VOL is considered LOW for a gain of 1.6% on the exchange index.

Today @ 12:30pm, there has been an announcement of Singapore's GDP soared 32.1% in the first quarter from the previous three months in annualized, adjusted terms, leaping upward from a 2.8% contraction in the fourth quarter of last year. 

This has marked the fastest pace in growth since the data series began in 1975. It was also much faster than expected, and topped all forecasts in a Dow Jones survey. Thus Singapore government increased its GDP growth forecast for 2010 projecting an expansion of amid 7.0% to 9.0%. It had previously forecast growth of 4.5% to 6.5%. 

Singapore also raised its consumer price index growth expectations for this year to 2.5% to 3.5% from a previous forecasted rise of 2.0%-to-3.0%. 

Intel's stronger-than-expected earnings have certainly improved sentiment of the STI market as well.

Important Resistance of STI: 3040

Immediate Support of STI: 3000

MY TACTIC: Hold your current portfolio and DO NOT BUY now. Look out if earnings can further push the market up otherwise prepare to SELL.