As early as August last year (2015), which was the time I went for my one month tour in USA/Mexico/Cuba, the STI Index entered the dangerous RED ZONE, which signified a change in its long-term trend.
This was one of the major warning signs and red flags which made me liquidate almost all my long positions.
At the end of last year, I also prepared a long-term chart to study the 30-year trend of the STI, so as to pin-point a possible buying point near the market low. Since then, the STI has dropped alsmost 1000 points from the peak.
WE ARE CURRENTLY AT A MAJOR SUPPORT LEVEL
Currently, the STI is at hovering near the 25xx level, and the major support level is around 2500-2520.
The STI is consolidating around that level, and it is does manage to break below that, then the next level of support will be around 2200, which will be the buying zone predicted in the long-term 30-year charts in the previous post. That will be a good level to accumulate long positions for the next bullish cycle.
I will be watching patiently from the sidelines.