Weekend review of STI and DJIA

By the Dow theory, a higher high and a higher low is confirmed for the Dow Jones thus an uptrend is still in place despite the dips recently. I believe DJIA should rebound off from it's current level technically.

DJIA has tested the 200d MA and has successfully close above it for the past 2 closings. Furthermore, the formation of a doji candlestick suggest that a short-term bottom has been reached. Moreover, DJIA now lies on a trendline that was drawn connecting the prior two higher lows thus i believe DJIA will not dip anymore beyond this level technically.

Dow Jones Industrial Average:


What is being said for the DJIA is different for the STI. The Straits Times Index tested the 200d MA on thursday and failed to close above it and i consider that to be bearish. Notice that this also rebounded off the resistance trendline drawn connecting the prior two highs. There was a prior small gap up which will act as a support technically so there is a chance that STI will dip til this level. However, for both the DJIA and STI, the trading volume still remains light overall.

I am still bullish overall going by the charts and if one still believes that the DJIA is a leading indicator of the STI.

Straits Times Index: