Dow Update

We have another disastrous week for the US market. The Dow Jones Industrial Average was down. The index fell from a closed of 11842 last Friday to close at 11346. The index has broken the lows established on 22 Jan 2008.

What is next for the market? The picture looks gloomy. With the Federal Reserve done with cutting interest rates and possibility of increasing it to fight inflation, the catalyst will not be coming from the Fed. If we can see a crash in the prices for oil and commodities, that will spark a recovery in the stock market. But “Hope” doesn’t bring in the money. It is safer to trade with the trend.

The phase chart is showing a Bearish bias towards the market.


The index moved into “Bearish” phase on 21 May 08 and has stayed there for 27 trading days. The picture doesn’t look good for the Bulls.

US Technology Sector

US technology sector had a good day on Monday with the NASDAQ up 20.28 points. If you are confident of the US technology, you can invest in QQQQ which tracks the NASDAQ index.

The phase chart for QQQQ shows that it is now in “Accumulation” phase. The 50 day and 200 day moving average is about to make a crossover. When that happens, the QQQQ will be in “Bullish” mode.

Let’s see if this can take place this week.

Shanghai Market Update

Shanghai market was hammered 4 days in a row. It would have been 5 days in a row if not for public holiday on 9 Jun 08.

The market closed at 2868 points, down 461 points for the week.

The phase chart showed that the index moved into “Bearish” mode on 10 Mar 08 and the market has been facing selling pressure ever since.

The rebound from the 22 Apr 08 low of 2990 faced a big resistance at the 50 day moving average and the index has now fallen below critical support.


The market has stayed in Bearish mode for about 99 trading days. With the Dow rising 165 points on Friday, Shanghai market should see buyers on Monday. But the trend is still favouring the Bears.

STI Update

STI is suffering from another round of Bear attack. The index is now back to “Bearish” phase.

The index has stayed in “Bearish” mode for 5 trading days now. Let’s hope it can move out of “Bearish” mode soon.

The index is now below both the 50 day and 200 day moving average of 3154 and 3303 respectively.

STI Update

STI closed at 3192 on Friday, up 70 points for the week.




The 50 day moving average is increasing, that is a good sign for Bullish investors. The index has been in “Recovery” mode since 25 Mar 2008, a total of 47 trading days.

The index is now between the 200 day moving average of 3308 and 50 day moving average of 3126. The longer the index stays above its 50 day moving average indicates that the bears are losing strength and are not able to move the index below its 50 day moving average.

However, in order for the Bulls to declare victory, it will have to climb above its 200 day moving average.

So long as the 50 day moving average can keep its upward momentum, the index is likely to move to “Accumulation” mode soon.