Market Diary:
World Indices:

Monday, June 6, 2011

Straits Times Index

Comparing to S&P500 and DJIA, the STI is more resilient. Instead of a correction, it has chosen to consolidate sideways since early May. The sideways movement resemble a symmetrical triangle. By default, a symmetrical triangle has the tendency of resuming the prevailing trend after the sideways action. A breakout from the upper boarder confirms the s-triangle while a breakout from the lower boarder invalidate the formation.

The dotted lines in the chart denotes the respective support and resistance.

It is worth noting that currently the prices are trading below 100MA and 200MA, which has bearish implication.

In the event if prices break below 3,060, it will turn bearish according to Point and Figure chart. When that occur, the index is looking set to retest 2,920.