Weekend review of DJIA and STI

There has been some important movements for the Dow Jones. On thursday, it broke the 61.8% fibbonacci retracement support level. This means that technically speaking, we are likely to see it testing the January low level of around 11700 somewhere this week. The only thing is that the volume is not that heavy with this current dip so it's a minor thing in my humble opinion.

I dun profess to be able to predict the future so I reckon there are 2 ways which the DJIA can move in subsequent closings. 1st of all, the Fed meeting which can swing the markets is on the 18th of March which is 9 days away from the time of this post. During this period of 9 days, we should see DJIA dipping to around 11700 and hover for a while. It may swing up slightly depending on any rumors of the outcome of the Fed cuts but that is not important. If the Fed cuts are to the satisfaction of the market, we should see it bounce off the 11700 level to sustain a technical rebound. Likewise, if the Fed cuts are not to the expectations of the markets, we will see it break 11700 level into the middle of nowhere. This should conclude the macro trading strategy for the next 2 weeks. In short, if market bounces off 11700 level for a technical rebound, hold your horses for a while before placing a short at expected resistance such as the resistive trendline. If the market falls through 11700, capitalize on the downwards momentum by shorting it.

Dow Jones Industrial Average:


Nothing much for me to comment on the Straits Times Index. I'm just expecting it to hit the level of 2700 soon if DJIA break through it's support.

Straits Times Index:


SGX is looking very attractive to short. It broke it's January low of around $7.56 with heavy volume. Notice $7.56 has been a prior support twice and this looks like a good opportunity to short.

SGX: