The phase chart is telling investors to be careful as the market is now in “Distribution” stage. The STI index is now facing resistance at its 200 day moving average. The rebound seems to be a bear market move with momentum indicators painting a negative picture.
Note that the STI has broken its double top formation and this indicates a potential for the index to drop to the 2900 region.
As the phase indicator is showing that the market is in distribution phase, it will be wise to step aside and wait for the dust to clear before going into the market.
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