Moving nowhere for a while

The market seems to have establish some kind of support level as of now. For the Dow Jones, basically it tested the level of around 12740 twice and this level will act as the support for now. It closed with a rally on the latest closing with significant volume and that is good.

Dow Jones Industrial Average:


For the Straits Times Index, there was a upside gap 3 closings ago and this gap was tested sucessfully in the sense that it did not close below the gap and dat is bullish. One thing that puzzle me was that though DJIA rallied up on the latest closing, STI failed to close up higher. But as of now, STI has established a support level with the tested upside gap.

Straits Times Index:


In my humble opinion, i reckon selling pressure or the momentum have eased off already. STI fails to move up cos there is no buying pressure as the sentiment is still mixed. So what can change the sentiment of the market and that is, to convince people to be buyers again ? That will depend on the outcome of the next Fed meeting which will be coming soon in Dec. That outcome will be reflected in the charts by the index moving north and that is if the Fed cut their rates. Hopefully, if they cut their rates, buying momentum will resume and i can start to ride the trend again.