The benchmark STI started 2010 with a bang as it continued to surge despite the on-going “market talk” regarding the bursting of the potential asset bubble in China. The uptrend for the STI is still intact as it remains above its 20 and 50-day moving averages. In addition, a bullish crossover was detected in the Stochastic oscillator. This signal suggests that upside momentum is building up and the STI may be poised for further upside in the next few weeks. On the upside, be on the lookout for its key resistance at 2997. A break above it may trigger a furious rally towards the next resistance at 3085. However a violation below its immediate support at 2883 may put the bulls on hold to see a slide towards the next support at 2827.