STI Update

Singapore stock market is having a good run. The index is now 6.8% above its 50 day moving average.

From the phase chart, we are now in “Recovery” mode. The index has moved into “Recovery” mode 4 times since it went into “Bearish” mode in the beginning of Jan 2008.

The index is facing resistance level of 1780. We have not seen such strength in the market for a long time now. Hopefully it can clear this level and proceed to test its 200 day moving average.

China Market

Shanghai Market is among the better performers in 2009. The Shanghai composite index has managed to stay in “Recovery” mode since early Jan 2009.

The index is now sitting between the 50 day and 200 day moving average. The index climbed from a low of 1664 to hit a high of 2402 before pulling back to current levels. That is a gain of almost 45% in a span of about 5 months.

The slope 50 day moving average is turning positive which is a good sign. The 200 day moving average is still moving with a downward bias.

The index will have to go above 2359 in order to move to “Accumulation” phase. Let’s see what happen this week.

Have a great time trading the market and remember to follow the trend.

STI

Dow closed at 7062 on Friday, down 119 points. The index has fallen through the bottom set in Nov 08.

STI is also following a similar pattern. It is now at 1594 points. It looks likely that the index will go below the low of 1473 set on 28 Oct 08.

The phase chart is showing continuing weakness. The index is still in “bearish” territory. It did go above its 50 day moving average for a while however the momentum could not be sustained. Singapore market, being an export dependent economy, will need other countries especially US and China to recover first before our own market can climb out of the doldrums.