Rally led by retailers

Dow Jones broke above the 200d MA and along with the other MAs used in my chart, namely the 50d and the 100d MA and that is a bullish sign. Next resistance will be the prior peak level around 13767. Overall, it's a good sign that DJIA is finally recovering.

Dow Jones Industrial Average:



I do have more observations on the Straits Times Index. STI is still below the 200d MA but given that DJIA is now above the 200d MA, STI should be testing it soon subsequently. Next resistance level will be the prior peak level which is at around 3621. A breakout above this resistance will result in a double bottoms formation technically.

Today's trading volume was exceptionally light though it was a full trading day. The 2nd last closing's volume was light because STI only traded for half a day. This would mean that the rally was led by the retailers and the funds are still not back yet and that does not sound very good to me. I can't predict when will they be back though most speculate that they will be back after the new year. However, it will be reflected in the chart technically.

Straits Times Index:


Anyway, congrats to all those who bought near the November prior support level. That support level held and those who had bought den should be sitting on some profit buffer now :)

AdvSCT caught my attention on my list of charts. The level of $0.935 is an interesting level. Notice that there were 2 prior gaps up on the chart at this level thus they are acting as a support at this level technically. Furthermore, the level of $0.935 was tested successfully as a support level by the candlestick tweezer bottoms. This level should be safe to buy in.

AdvSCT: