Technical rebound perhaps

Looking at the chart of Dow Jones, there was finally a respite as it finally closed higher last friday. But still, the white candlestick was accompanied by low trading volume and this has been becoming a familiar sight. Notice how Dow formed a very strong hammer which was accompanied by a very long lower shadow and by friday's closing, it formed a morning star-like variation. However, with high volumes accompanying black candlesticks and low volumes accompanying white candlesticks which has been becoming very common nowadays, it is still not looking good technically. We will have to see how the Dow Jones test the 100d EMA and whether it will break the support-turn-resistance level of around 13260. Still gotta remind myself that the Dow Jones has failed to make a higher high and a higher low so i am still bearish.

Dow Jones Industrial Average Chart:


STI formed a hammer-like candlestick with significantly higher volume on Friday's closing. Since the Dow closed higher on friday, i believe STI is likely to have a small rally which will test the 200d MA.

I do believe that there will be a technical rebound going by how the charts are forming a lot of trend reversing candleticks. But i think it will still be short-lived going by the technical indicators so far. So just gotta keep on watching the charts.

A lot of counters are again positioning for a rebound but going by my previous posts, though counters maybe in a position for a technical rebound, it may not happen as a lot depends on the direction of the indices.

Straits Times Index Chart: