We have a pullback of the index this week. STI dropped from 1896 to close at 1852 for the week. The index went below the 61.8% retracement level on Tuesday but was able to snap back from the losses.
As long as the index is able to hold above 1754 level, we still have a pattern of higher highs and higher lows. This bode well for the bulls.
The 50 day moving average is upward sloping and the index is still above this moving average line. Bears will not be aggressive in shorting the market with an upward sloping 50 day moving average. The bigger bears will come to the market if we see the index dropping below this average line.
One of the worrying sign is MACD indicator. This indicator just made a cross below its signal line.
Support level is at 1813 and 1754. Resistance is at 1868 and 1950.
As long as the index is able to hold above 1754 level, we still have a pattern of higher highs and higher lows. This bode well for the bulls.
The 50 day moving average is upward sloping and the index is still above this moving average line. Bears will not be aggressive in shorting the market with an upward sloping 50 day moving average. The bigger bears will come to the market if we see the index dropping below this average line.
One of the worrying sign is MACD indicator. This indicator just made a cross below its signal line.
Support level is at 1813 and 1754. Resistance is at 1868 and 1950.
