Weekend review of DJIA and STI

Dow Jones look pretty suspicious to me. It seems like a healthy retracement is taking place with the declining volume being seen. On the other hand, I was expecting it to test the trendline as a supportive trendline with the retracement at least but it just fell through the trendline as though the trendline was not there. I am not certain about the direction as of now but it seems to me that the breakout of the resistive trendline was just a facade and this breakout did not carry on with strength.

Dow Jones Industrial Average:


I went to Bear's blog and took a look at his latest posting and his sentiments were the same as mine. It is strange that DJIA had 3 black candlesticks in a row while the STI had 3 white candlesticks. STI seems to be diverging from DJIA and i suspect this is due to the bullish sentiment in the s-shares. If that is the case, we should see STI converging back with DJIA soon. Once again, the breakout of the resistive trendline look suspicious since there was no volume to support the rally after the breakout. Maybe one should take a waiting stance first.

Straits Times Index: