National Day Parade + Rally !

There is this saying that goes around the trading community that when it is near national day parade and that is STI will rally up during the period national day parade. Tink this prophesy was kinda fufilled when STI rally today with a close that broke that all important trendline that was formed 1.5 years ago and is now above the trendline. But a closer look reveal that things are not rosy.

Why am i saying this ? Firstly we should take a look at the Dow Jones. At the latest closing, Dow managed to close and get supported by the 50d EMA. But a closer look will reveal that there was indecisiveness in the market as the candlestick showed a high and low that was far away from the open and close and forming a doji-like candlestick. Another technical indicator is also not looking that rosy and that is the volume. Volume is still lower than the previous day and was definitely lower than the day when Dow slips heavily on the 3rd of August. Volume confirms price action in Technical Analysis and a higher close should be confirmed by heavier volume. Thus this indicates that things are not actually as bullish as to be seen.

Now moving on to the STI, it managed to close the gap formed 2 days ago and that is a piece of good news. It is of utmost importance to see how high will this rally go. For a lower high and a lower low will therefore confirm a bear market is in place. I tink now everyone is not expecting STI to break it's highest high of near 3650. Right now, i am just waiting for a bear market to be confirmed and when it is confirmed, wait again for it to bottom out. Current stuff to watch is to see whether STI will break the nearest resistance of 100d EMA and see STI should find support on the 1.5 years old trendline which i expect it to be. Chartnexus which is my charting software has not been displaying the trading volume for STI for the past few sessions so i am lacking an important technical indicator and that is volume so i can't reli comment more on the price action from the perspective of trading volume. Hope they rectify the problem soon :-/