Market View
Dow Jones Industrial Average:
DJIA has been range bounce between the key support at 9,800 and the 200 SMA at 10,300.
ADX is over-extended along with RSI at low level suggesting the near term selling pressure maybe easing, at least temporarily.
For the mid to long term trend, I am unable to find evident of bullishness yet ( ie: bullish divergence, major chart pattern...etc. ). On the contrary, my Elliot Wave count seems to suggest we are completing Wave 4 of Corrective Wave A. If this is correct, the implication is bearish because after Wave 4 ( target 10,300 & 10,500 ) will see Wave 5 ( target 9,400 & 8,800 ) and thereafter Wave B & C. I will, however, take this with more than a pinch of salt not only because my Elliot Wave skill is subject to doubt but Elliot Wave itself will usually make sense in retrospect of the hindsight. As the market is still unfolding, the wave count continues to change...
ADX is over-extended along with RSI at low level suggesting the near term selling pressure maybe easing, at least temporarily.
For the mid to long term trend, I am unable to find evident of bullishness yet ( ie: bullish divergence, major chart pattern...etc. ). On the contrary, my Elliot Wave count seems to suggest we are completing Wave 4 of Corrective Wave A. If this is correct, the implication is bearish because after Wave 4 ( target 10,300 & 10,500 ) will see Wave 5 ( target 9,400 & 8,800 ) and thereafter Wave B & C. I will, however, take this with more than a pinch of salt not only because my Elliot Wave skill is subject to doubt but Elliot Wave itself will usually make sense in retrospect of the hindsight. As the market is still unfolding, the wave count continues to change...
Straits Times Index
As we are currently trading below the 200 SMA, the odds favor the bear! 2,775 is where the 200 SMA lies and it will form strong resistance at this level. Unless the index is able to break above this level decisively, the bear will continue to dominate the trend.
Similar to DJIA, Elliot Wave count suggested a bearish mid ~ long term view. The monthly chart shows that STI is at the verge of triggering Parabolic SAR sell phrase ( around 2,600 ). So unless STI is able to break above the 200 SMA, the odds favor that we have entered a bear market.
Similar to DJIA, Elliot Wave count suggested a bearish mid ~ long term view. The monthly chart shows that STI is at the verge of triggering Parabolic SAR sell phrase ( around 2,600 ). So unless STI is able to break above the 200 SMA, the odds favor that we have entered a bear market.
Labels: Market Direction
posted by Market Wizards @ June 02, 2010
Comments: 0
