How Sustainable is the Current Rally? What Caused it?

After the bad jobs report last Friday, the chance of an interest rate increase has gone down, and this is interpreted as a bullish sign for equities, as seen in the strong BOUNCE in the last 2 days, as well as today.

There is a good chance the STI will try to test the 3,000 level again, after a false breakout from its previous flag/triangle, giving rise to an expanding triangle pattern.

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In addition, we also have some good news on the confirmation of the Trans-Pacific Partnership Trade deal with 11 pacific nations.

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It is best to wait a while for the dust to settle, and see if the downtrend continues. For existing positions, don’t forget to manage your SL carefully. Good luck!

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