The market seems to be moving up for the past few days, and from now on, I feel that it is possible for it to slow down slightly, before any continuation. As of now, the STI dipped and looks like slightly resisted. US DJI momentum seems to slow down too. Perhaps, this is the time for clients to sell into strength first.
For the next few trading sessions, or even next week, I suspect the market might consolidate awhile before deciding any direction. October is also a period whereby most companies will announce their 3Q results. I would say, it’s a slightly vulnerable month too.
If we look at the STI, we can see that STI is still on a downtrend. However, if you notice the red line (20days moving average), it seems like there is a change of trend. Perhaps, market might slowly recover from this range? Some might ask, what is the purpose for us to look at the indices?
Well, looking at these indices chart give us a quick snapshot of the current market.