Singapore bourse- Rising wedge formation close to breaking down.

The ST index had reached a high of 3559 yesterday and quickly reversed
down. We had earlier identified the 3550 level as a critical resistance
level while stating that the index could be in a terminal wave 5 move.
Today's decline has raised the probability that a significant peak is in
place. The pattern of the index's move from March low off 2930 has traced
out a rising wedge pattern and typically any breakdown will result in a
sharp reversal. As we write this the index has already lost 35 points at
3523. Immediate trendline support is at 3512 for today. There is a risk
that the index could gap down if sentiment turns negative. As such, we
think it is prudent to reduce exposure. If the index breaks below the
uptrend line, then next immediate support would be at 3400, the low of the
prior 3 weeks. Readers should also note that other regional markets are
also week and indices like the KLCI and Jakarta Composite Index appear!
vulnerable to a steep correction.