STI and DJIA weekend review

Dow Jones tested the 61.8% fibbonacci retracement and failed to close above it. A break above this retracement level will mean that the DJIA will probably go all the way north to it's October's peak. Furthermore, it has broken the trendline that i drawn which connects the previous 2 peaks and that is a good sign. Overall, things are still going well on the charts.

If the DJIA should retrace, it is likely to land at the area of yellow region highlighted in my chart and that is due to the 100d MA and the current channel support in the yellow region.

Dow Jones Industrial Average:


For the Straits Times Index, it found support on the 100d MA. It is still some distance away from the trendline that i drawn connecting the previous peaks. Given the DJIA has broke that trendline, i think STI should break this trendline soon.

Straits Times Index:


Overall, i feel that the markets is definitely not as volatile as the previous 1 to 2 months ago. Things are starting to look much more predictable and boring perhaps though i would say the buying momentum is still not back yet. I hope that the outcome of the Fed meeting will bring back the buying momentum to sustain the end of the year rally. I noticed in my charts, most of the counters have rebounded off their support already but are still some distance away from the resistance levels thus buying on breakouts of resistance is still a risky move.

Meanwhile, there was some news released over the weekend that China raise their reserve ratios and the implications of it is that the s-shares will take a dip on Monday. For a start, i dun buy on news but rely entirely on technical analysis only. Maybe that piece of news explains why some of the s-shares in my charts open on a gap up but covered back their gaps and close below their gap for friday's closing which i tot that it was pretty surprising given DJIA's strong closing on thursday. Perhaps this is yet another example of price action comes before news :) If i were to buy on news, probably it will be too late since there are definitely some privileged individuals who knew of this piece of news before the general public knew it and started to dump their shares before the weekend.