29 Aug 2010
Stocks rallied and Treasuries retreated after Bernanke pledged to safeguard the economy on last Friday. The rebound has confirmed that the psychological support level of 10000 is in place. DJI has been in the retracement period for 3 weeks and this may potentially marks the turning point of the market.
Looking at the technical perspective, indicators are showing that the bearish momentum is starting to fade off - stochastic crossover and Macd bar with 4r1g. This may be an indication for the change of momentum.
However, please beware that we are still in the short term downtrend.
For DJI to resume its uptrend, it must first break the resistance level at 10424 and form a higher low.
I am positive for the upcoming week.
What to look out for?
1st Resistance level: 10293
2nd Resistance level: 10424 (Crucial level)
If support can't hold at 9974, next support to watch: 9688
DJI
STI
Support is holding well at 2921 and indicators are pointing upwards. These indicate a positive sign for STI. Together with DJI's performance on last friday, STI is poised to go upwards.
What to look out for?
1st Resistance level at 2959
Retest of the Psychological resistance at 3000
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