DOW opened 2009 with a bang, going up 258 points to close above 9000 points for the first time since 5 Nov 08.
Singapore market also got off to a good start on Friday with the index closing above 1800 points.
The technical indicators are bullish at this point but do not seem to point to a sustainable rally.
The MACD indicator is still above its signal line which is a bullish sign. But one concern is that the indicator made a bullish crossover at the end of Oct 08 and may pullback anytime soon.
ADX indicator is still at the low end indicating that any rally will not be sustainable. The good thing for the bulls is that +DI is now above –DI. So there should be a short term rally.
RSI is also not at overbought level and there is still room for the market to go up.
Hence for the short term the market should be positive but mid and long term the market is still not in good shape unless we see further evidence on the technical charts.
Happy trading!
Singapore market also got off to a good start on Friday with the index closing above 1800 points.
The technical indicators are bullish at this point but do not seem to point to a sustainable rally.
The MACD indicator is still above its signal line which is a bullish sign. But one concern is that the indicator made a bullish crossover at the end of Oct 08 and may pullback anytime soon.
ADX indicator is still at the low end indicating that any rally will not be sustainable. The good thing for the bulls is that +DI is now above –DI. So there should be a short term rally.
RSI is also not at overbought level and there is still room for the market to go up.
Hence for the short term the market should be positive but mid and long term the market is still not in good shape unless we see further evidence on the technical charts.
Happy trading!
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