Market Update.

This report was compiled by DBS Vickers this morning:

We told you so: That US economic woes are not going to go away overnight, that commodity markets will be volatile (i.e. wild swings), that oil price should see a technical rebound from slightly below USD100pbl, that a technical rebound in the STI towards 3046 short-term is a chance to reduce.

This scenario is panning out during the course of the week: STI retreated from a high of 3023 yesterday and is likely to dip today on the back of the overnight fall on Wall Street and oil price has rebounded from a low of USD98.6pbl to USD105.9pbl.

We are sticking to our view, that the index is likely to stay range bound from 2746 to 3046 in coming week(s). The range bound behavior offers band trading opportunities when the STI dips closer towards 2746. The 2868 level is a support/resistance level within this range.