Weekend review of STI and DJIA

This post will be a very simple one. The Dow theory worked relatively well in the previous corrections though by the time it is confirmed, it is a bit late in catching bottoms. Rather it can be used to confirm bottoms. A higher high and a higher low will confirm a uptrend and a lower high and a lower low will confirm a downtrend.

For the Dow Jones, it can be seen from the chart that a higher low has been confirmed. Going by how it pierces the peak of the index action, a higher high has also been confirmed thus this implies that a uptrend is in place. Notice that the latest closing was done with heavy volume.

Dow Jones Industrial Average:


For the Straits Times Index, a slighter higher low has been confirmed and a higher high is also in the making. Thus this should signifies a uptrend is taking place.

Straits Times Index: