Straits Time Index (STI) is just trading above a critical support at about 3,042.

Things to watch:

1. If this previous resistance level (3,042 which is also the 200D MA support) cannot turned into support, STI will start the down trend and head towards at least the 2914 level (78.6% Fibonacci Support).
2. Another important level to watch is 3,122 resistance which is also the neckline of the complicated Head and Shoulders pattern. If STI cannot break this resistance and bounces down, the chances of breaking the 200D MA support is extremely high.

One thing for sure base on the chart pattern, Bull is still enjoying the Chinese New Year and not back to work yet!