Where do we go from here?

Extracted from DBS Vickers report:
We maintain our technical view for the STI to trend lower to2970-2980 before finding firmer support. Along the waydown, temporary support is seen at 3050 while theimmediate resistance from here is 3115. While near-termdownside is seen, investors (and traders alike) who heeded our recent call for the STI to decline to 2980 and stayed onthe sidelines should re-position into stocks when that leve lapproaches or is reached.

If the weakness continues, I expect certain companies to buy back their shares as the prices are sharply undervalued. Based on recent trends, the following can be counted on to do so:

1. Meiban
2. Straco
3. DMX
4. Technics Oil & Gas
5. Best World

Anyone else would like to add to the list......

@virtuoso - I respect Roubini's in-depth knowledge of US economy, maybe even EU but I dont think he is a China expert. Many so called "China experts" in the West have only spent a few weeks in China, some haven't even been there. Here's one of the best summary re China ,written by a real China expert Stephen Roach. I will only start to worry about China when it becomes the world's largest economy in 10 to 15 years time. www.chinadaily.com.cn/cndy/2011-06/03/content_12633677.htm

@relaxing, here's an Asian take on China economy and leadership
***************
Quoting from  BT:
But Kishore Mahbubani, dean of the Lee Kuan Yew School of Public Policy, yesterday said separately at the Nomura Asia Equity Forum that Prof Roubini's take on China would be a 'tremendous wake-up call' for the Chinese policymakers.'One reason why China will not have a hard landing is because Nouriel Roubini said there would be a hard landing,' he quipped.'Given the quality of economic management in China, I think they will find solutions to this.' 
****************
My take is the Chnese leaders have been very proactive in resolving the problems they face, among them property overheating and oversupply in production capacity. This is in contrast to the West who has let the property mkt blow up in their face. During Grenspan days, the Fed believes in the govt should not interfere in financial mkts and pricking asset bubbles.

Kospi has made a double bottom at 2025 2 days ago and now 2081. HSI opened weak and rebounded strongly this morning. If Kospi and HSI  provides leadership STI may have a temporay bottom 3040. Give that sentiment is not extremely bearish yet, any rally that crystallises from here may just be a technical rebound before lower lows are made. 

China ordered lenders to set aside more cash as reserves after inflation accelerated to the fastest pace in almost three years in May and industrial production rose more than estimates.A half percentage point increase announced by the central bank today and effective June 20 will take the ratio to a record 21.5 percent for the nation’s biggest lenders. The announcement was hours after data showing the annual inflation rate climbed to 5.5 percent.Signs the world’s second-biggest economy is maintaining momentum after increases in borrowing costs and curbs on real estate may have encouraged policy makers to add to tightening measures. At the same time, weakness in the global economy and data yesterday showing slower bank lending and money-supply growth may make a decision on further raising interest rates a tougher call.