A Look At the Big Picture - DJIA: The DJIA moved in a tight range amidst the growing voices of the end to a bear rally over the last 1 week. Indicators showed that the market is in an overbought position. Although the +DI is in the bullish zone, its convergence towards the -DI indicates a waning of strength in the bull. The DJIA is in a cross-road, yet again. A break above the 9000 would provide investors with another signpost for more upside to come in the coming weeks. The support for DJIA is in the 8600 region, which is also the 20MA support level. A break below this level will post the initial warning signs of a possible change in trend and mood. I'm cautiously bullish of the market. Key events that could rock the markets: Reaction to the G8 meeting, Iran presidential election and N. Korea's reaction to the sanctions.
STI: Many black candles in the STI over the last 2 weeks. The STI is in a consolidation phase, at the same time, it is also attempting to test the 2400 resistance level. The good thing to cheer is that the STI is trending along the 5 EMA support line. However, its convergence towards the 20MA line indicates a slowing down of the bull trend. Over the next 1 week, the STI could see further consolidation. A break above 2400 with high volume will be a good signpost for more upside. While the breakdown of the 20MA support level will potentially points to more bearish sentiments.
My Stock Pick from Indicators Watch:
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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