STI was weak as compare to the others

US market:-

Since Monday, DOW has been kept trying to break 16,000. 

 

Thursday, we heard the news on Janet Yellen is closer to become the next head of the US Federal Reserve after her nomination was approved by US Senate banking committee.  And her appointment is likely to be approved by the full Senate, which is Democrat-controlled.  The news sent DOW broke 16,000 and closed at 16,064 on Friday.  S&P also broke 1800 and closed at 1804 on Friday. 

 

Some economists and analysts are saying that DOW could go to 20,000.  I am not convince with the number.  August, I predicted DOW will hit 16,000 by end of this year.  This time, base on my calculation, I am more likely to look at 16400 as the next resistant level. 

 

Base on TA, I see a divergence on DOW and S&P.  MACD and Stochastic showing over bought.  Can DOW and S&P stand above 16000 and 1800 for 5 to 10 days?  Let’s see.  Take note that this week US has only 3.5 trading days. 

 

ASIA:-
I see 1 plus 2 long white bars and then follow by a 4 days consolidation for the Shanghai index.  The next resistant for Shanghai index is 2240 and 2270. 

Hang Seng had a double gap up and touched 23875 resistant with a retracement.  Hang Seng needs to break this resistant before we look at the next resistant at 24400. 

Nikkei 225.  It is a very unit index.  We need to monitor closely on "yen" to trade the Nikkei.  It gap up, broke the triangle, followed by a retracement and advance further.  15950 to 16000, that is like a high voltage electrical wire.  Watch out on that.

 

 

STI:-
There are numbers of STI stock which fall in box trending, triangle, support level and divergence.  Like Wilmar and Golden Agri, we see great movement on these 2 counter, but I am a bit concern as it has a divergence.  

The trading value for STI is pretty low.  Recent Asiasons, Blumont and LionGold hurt quite a number of traders/investors.  December holiday plus recent internet trading value control, traders were not so willing to pump in more fund into Singapore equity market. 

Therefore, STI is rather weak as compare to the others.  3200 has become a resistant for STI.  On Thursday, it gap down and broke the triangle.  Luckily, 3160 had shown a strong support for the STI. Now, I see 2 similar length hammers formed at the 3160 support level.  Can these 2 hammers revert the trending?  We need a CS confirmation.  Watch out on that.