The chart above is a daily chart of the MSCI Singapore index futures. Since the last post where i mentioned that we are close to an intermediate top, SIMSCI plunged about 50 points from the high set in mid November last year, a correction comparable to the one triggered by the Euro Crisis back in May 2010. As you can see, SIMSCI is well-contained in the blue uptrend channels drawn since apr 2009 and was poised to rebound nicely on its third touch at the lower channel only to close below it when unexpected news from Japan broke out. Since then, the market has recovered strongly in the backdrop of geo political situation/natural disaster/high oil prices/ongoing crisis in Europe. i think such market action is very bullish and reinforces the fact that we are still at the early stages of a bull market. After the SIMSCI bottomed out in late May during the Euro Crisis it began an intermediate upward move that took it about 75 points up. A similar move up from the recent bottom at 342 would bring it to 417. I expect the SIMSCI to continue its upward move and retest the upper rising channel.
