Dow Jones Tumbled heavily on Friday, Singapore Straits Time Index followed suit today. You can easily see in the chart that lower high was formed since May 5, suggesting a down trend. I also spotted that a triangle is in the formation on STI. Only a breakout can confirm the final market direction in a triangle.
STI is now trading at the junction of 20d MA and 50d MA. However, I will be looking closely at the 100d MA, if STI break downwards on the triangle and further break the 100d MA support. That will confirm the down trend. The immediately support will the the gap support at approximately 2944.
I recalled that Dow Jones has broken all the 20d, 50d, 100d and 200d MA support and high chance that it is trending downwards. I tends to believe that the probability of STI correcting down below 3000 level is high. I will be monitoring for some possible to short the market now!
DISCLAIMER: This information is used for learning purposes only. It does not constitute an offer or solicitation to buy or sell. You should do your own analysis on top of my postings.
