Market Outlook (01/05/10): Look out for Greece bail out package in this weekend!

In last week, STI lost 29 points from the opening of 2988 and close lower at 2959 to mark a black candlestick with long shadow after a hanging man last week to show sign of indecision in the market VOL in this week is LOW as well but slightly higher last week.  

Yesterday Goldman Sachs continues to draw fire as the prospect of being a possible criminal investigation by SEC created worries throughout the stock market and knocked down the financial sector by 2.4 percent.

Over this weekend, the EU and IMF were expected to state on a more clearly defined Greek bail out package, which should calm restless investors.

Warren Buffett will also address his 40,000 shareholders Berkshire Hathaway on Saturday to what to expect in near term.

Another closely watch news on next week is the US employment report which expected to show job gains of 175,000 and an unemployment rate of 9.7 percent.

Technical Analysis on STI

Apparently the situation in Singapore market is uncertain as STI is sitting near the important resistance of 2940 with LOW VOL traded. Once the support at 2940 gave way, STI will be expected to slump as low as 2880.

The minor uptrend of STI is already broken and currently trading in the consolidation phrase. Though the possibility of pullback is much higher, we would not advise investor to clear all their stocks immediately. If Greece bail out were to settle in this weekend, it will probably improve the market sentiment on next coming week

Important resistance of STI: 3020

Immediate Support of STI: 2940

MY tactics: Start to reduce your portfolios (Do not sell all) in MAY and take profits off the table. Reserve cash in bank to prepare to buy on dip as we are bullish on long term based on the economics data.