end of day look at STI

Good evening, the STI managed to close above 2700 today; in face, it closed rather strongly. The STI is going to have a hard time going up. It first has to break through the 50-day moving average, then the 200-day moving average. But it does look like we are seeing some light at the end of the tunnel. Having said that, the longer term trends, shown by the 200day and 50day moving averages, are still down, but like i mentioned in my earlier comment, we are seeing a bullish divergence in that the MACD has already traced a higher low as opposed to the STI making a lower low. This is a strong signal that the momentum is upwards for the time being. Is it safe to go in? I would suggest nibbling at the dips as the market is not going to go up everyday.

end of day look at STI

Good evening, things looks better during the past few days. The STI clawed back about 170 points over the past 3 sessions to close at 2668; about 20 points above the previous low. The MACD looks like it is forming a bullish divergence pattern, with the STI making lower lows while the MACD making higher lows. To me, 2700 looks like strong resistance, so if the STI is able to close above that level, there is a good chance that we are seeing a turn-around in the stock market.

For now, stay cautious! But i think the time to buy is near.

end of day look at STI

Good evening, today was another day of fierce selling down after the STI broke the last minor support of 2650 (previous low). It now looks like the STI is headed towards the 2400 level. Stay defensive, and save your cash to reenter the market when it rebounds. It would be quite dangerous to pick the bottom because nobody knows where the bottom is.

end of day look at STI

Above is a daily candle stick chart of the STI. Support at 2700 is already broken, and now we are back to testing 2010's low of 2648. If this support fails to hold, we are looking at 2400 as the next support level. The overall picture is rather bleak. I think it is better to stay out until some measure of stability is seen in the markets.

end of day look at STI

Good evening, this was another down day for the STI. I just wonder how long the drama at EU will pan out. As for now, the STI continues on its sideways move, with bias to the downside. Support at 2700 is still holding for now. But looking at the price action for the past few weeks, it appears that the bulls are getting weaker and weaker as we have have been seeing lower and lower highs each time the STI bounced off support. Things will be quite ugly if the 2700 support is broken. I would suggest investors take a wait and see attitude for now.

end of day look at STI

good evening, above is a daily candle stick chart of the STI. Major trend, as shown by the 50day and 200day moving averages, is still down. However, the STI managed to stay above the 2700 level, and that is a good sign. Resistance is 2900. Until there is some clear resolution to EU debt crisis, i suspect that the market will continue to bounce between these levels.

a look at sti

Good evening, above is a daily chart of the STI. Major support is 2700, major resistance is 2900. The STI has been moving in a volatile, sideways movement since late Jul 2011. Key concerns now are the EU debt crisis, persistent high unemployment in US, and the US government's suit against 19 banks for fraud in their sale of mortgaged backed securities to Freddie Mac and Fannie Mae. Of immediate concern now is the EU debt crisis. Until that is resolved, i believe markets will continue to be volatile and weak.