Referring to Singapore Industrial Index (STI), having a good steep run up in such a short period of time, some form of pull back is quite common, allowing it to rest a little before continuing its charge ahead. Yes, I am talking about the formation of resistance, likely to be at 2284. and later a new support which is still not visible yet.

Will STI plunge from here? If we were to look at the real economy, which still appears very fragile, the chance of further decline is possible.

However, there is a saying that stock market runs 6 months ahead of real economy, in which case the much talked about "green shoot" could mean the real economy is going to turn around in 6 months' time. Sounds too good to believe? Only time will tell.

If STI is able to break out the current resistance at 2284, the "green shoot" will grow into a big plant. Otherwise, STI will form support, stay sideways before turning either bearish or bullish.

Stay alert.