A Look At the Big Picture - CRB: The CRB (commodity Research Bureau) chart tracks price movement of key commodities and are particularly sensitive to factors affecting current and future economic forces and conditions. The CRB chart has broken its 216 support level last week. I believe that market has factored in Obama's stimulus package, Friday's bearish move on the CRB was perhaps an early indication of more downside to come in the coming 1-2 weeks, although there could be a temporary rebound in the next few days. Overall, we have not reached the bottom of the down-cycle that started in Jan.
STI: STI has been fluctuating around 1700 last week. 1675 will be a key support level to watch. Market could get a temporary reprieve from the bearish sentiments early week. The tightening Bollinger band suggests that a significant move is impending. Will it be up or down? This will depend on the world's reaction to the stimulus package. While market has largely factored in the stimulus package, major earnings news in the next 2 weeks could perhaps provide a clearer direction on the STI.
My Stock Pick from Indicators Watch:
LONG on Sembcorp
Disclaimer: My assessment of STI is for fun reading only. It is not an inducement to buy or sell nor an investment advice. By reading this blog, you have agreed that I shall not be responsible for any profits or losses based on the information provided.
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