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Thursday, March 15, 2012

Some Caution Signs....

There are some caution signs spotted in the STI daily chart and the Dow weekly chart.  Do note that these are just caution signs at the moment ( mainly derived from RSI bearish divergence ) but they are not definitive.  The underlying price trend is more important than the technical indicators. Therefore, these caution signs are preemptive in  nature and should not warrant any drastic actions ( eg: liquidate old long or initiate new short ) until the price trend prove the observation correct.

Straits Times Index Daily Chart

Dow Jones Industrial Average Weekly Chart