STI correction may be over perhaps

Ever since the Dow Jones fell a few closings ago, it seems to me that the STI is now following the Dow Jones closely. This will be good as there will less guessing done on how STI will open the next closing since Dow Jones is now leading it.

For the Dow Jones, i do have some reasons to believe that the correction for now is at least over. It formed a hammer candlestick on the 100d EMA. The hammer candlestick is a bullish reversal candlestick and being able to test and close above the 100d EMA is good indeed. I did a quick check on the previous corrections for the Dow Jones and came up with the level that the RSI should fall to before it resumes it's uptrend. Currently, the RSI has rebounded off this level. All these technical indicators suggest that the correction should be over at least for now in my opinion. As for the strength of this rebound, i still can't tell as there are not enough technical signs to show so gotta wait for subsequent closings.

Dow Jones Industrial Average:


For the Straits Times Index, it tested the 50d EMA today and close above it with relatively heavy volume. A/D line bullish divergence is spotted and this is a strong signal since during this period, STI trend downwards yet the A/D line trend upwards. One worrying sign though is that the RSI has not reach it's oversold level yet but in my opinion, this is a minor hiccup.

Straits Times Index:


I feel that the sentiment of the market is that the correction seems to be over. Now this is subjective since this is how i feel. Not sure how come i felt this way but it seems to me that a lot of people actually accumulate during this correction. Well, i can be wrong perhaps. Today is a good day for investors to get their shares cheaply. For traders, i am not that sure cos the market is not that bullish yet.

On a personal note, i made the same mistake once again. A few posts ago, i blogged on how i missed out on CourageMa because it gapped up way too much on opening from support and i was too fearful to buy. In the end, CourageMa just flew off the roof, leaving me behind. Gapping up on opening is a sign that the overnight sentiment of the market has changed to being bullish and i should ride on this momentum ! Today, i woke up early to check the opening and saw that all the counters in the top volume list gap up. But i din enter again due to fear. I feel like strangling myself man after seeing the closings of the counters today. I must keep reminding myself of this mistake i made and not make the same mistake again.