A 10% or more correction to around the June high of 2425 breaking the

current key 2530 historic support may not be a bad thing as it will attract

hordes of funds and retail players who had under-invested during the

March-early August run-up.

It is unlikely though that the 38.2% recovery mark ie at 2363 will give

way – meaning a 12.5% correction from 2700 – even though the half

way mark between 3831 peak and 1455 bottom at 2643 has now been

breached as well as the Jan 2000 old peak of 2608.

Despite the likely pullback bordering a 10% or so correction in coming

weeks – STI so far down 5% from 2700 to 2564 today - there should

still be trading chances in index stocks led by banks, properties and

conglomerates which suffer sharp 10% corrections from their recent

peaks.

The still youthful bull market has enough energy to put up a fight with

the bears and the STI should easily bounce up to 2600-2650 once it