A Look At the Big Picture - DJIA: Is this the end of the DJIA rally? Indicators has shown signs of resistance over the last 1 week. The DJIA was unable to break the long term resistance trendline and has formed a descending triangle, hanging precariously to the 8205 support level. A break below the support line could see DJIA retracing to 7900 i.e. 200MA support line. A retracement towards 7900 is perhaps a healthy sign, I think...and a good opportunity to collect some good stocks. There will be a series of release of economic figures next week, with anaylst predicting them to be "less bad" compared to the previous quarter. If this is indeed the case, the DJIA is likely to hold above 8200.
STI: The STI has shown more rsilient indicators and possibly more legs to run! Given the strong volume and a break above the long term resistance trendline, it is likely to continue its advance. The next few days could be choppy though, as the overbought indicators could suggest some consolidation taking place. However, it is unlikely to have significant downward move to trigger panic selling. Any dips are potenial opportunity to catch up on the previous weeks' lose opportunities. On the downside, the STI will see strong support at 2100.
My Stock Pick from Indicators Watch:
LONG: COSCO Corp, Yellow Pages, Rotary, Ezion Holdings
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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