STI 08/10/2009 - update

Previous post for STI is here.

Scenario 1: STI broke down below the ascending triangle and turned bearish. Price retraced back towards the triangle to create a throwback. If this scenario hold true it should go further down in the coming weeks.



Scenario 2: Another possibility of an ascending triangle in the formation as below. MA's have not yet turned down and we still have higher lows. Whether we create a higher high remains to be seen.



Although at this point any scenario might unfold, I remain a bit biased towards scenario 2 where the coming earnings season might carry the prices to new yearly high. In any case, I dont think the rally will last very long.