Weekly Technical Update - DJIA, S&P500, STI
Dow Jones Industrial Average
The massive rally last week took place within a large downtrend channel. Friday, the index attempted to break the downtrend line but failed. It closed the week with a long legged dogi in evening star position while Stochastic is overbought. We should see some retracement this week to the respective support levels marked in the chart above. Breakout above 12300 is unlikely but would be a strong bull signal which will invalidate the bearish view expressed earlier.
S&P500
Likewise, the S&P500 has rallied to nearly touch the downtrend resistance line and closed the week with a shooting star candlestick while Stochastic is overbought. The odds favor a retracement from here. Breakout above 1290 is unlikely but would be a strong bull signal which will invalidate the bearish view implied.
Straits Times Index
The STI has about 10~15 points more before touching the downtrend resistance line. Late buying interest Friday afternoon lifted the index to close above the positive territory. There may be residual momentum on Monday morning pushing prices higher before the index begin to test the downtrend resistance line.
Overall, I am bearish bias for the week ahead.
Labels: Market Direction
posted by Market Wizards @ December 03, 2011
Comments: 0
