Market Diary:
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Saturday, October 11, 2014

Volatility Returned, Market Bearish Bias

Last week, volatility returned to the world stock market.  The Dow whipsaw between positive and negative with triple digits gain and loss.  Friday's closing at 16,544 ( -115.15 ) has breached a long term uptrend line.

Locally, the STI has been testing the vital long term support at around 3,223.  It has been proven that 3,223 is an extremely strong support level because it has been touched multiple times confluence by Fibo 38.2% and 200MA. 

That said, I am bearish bias of the market because a quick scan after market close cannot find a single new long but many new short.

It may be wise to take a defensive role and watch to see whether 3,223 will be breached. Once penetrated, the next supports are 3,170 and 3,120.