The US stock markets dropped sharply again yesterday. All three major market barometers, DJIA, S&P500 & Nasdaq are likely to test their respective intermediate uptrend line soon. These uptrend lines lie about 3-6% below the current index level. For example, DJIA's strong support is at 14900 (about 3%below the present level of 15373), S&P500's strong support is at 1670 (about 4% below the present mark at 1742) and Nasdaq's potential uptrend line support is at 3750 (about 6% below the present mark at 3997).
Based on the above, I believe that US stock markets are likely to drop further over the next few days. That would compound the selling in many emerging markets which are driven by fear of economic turmoil caused by Fed tapering of its QE.
Chart 1: DJIA's daily chart as at Feb 3, 2014 (Source: Stockcharts)
Chart 2: S&P500's daily chart as at Feb 3, 2014 (Source: Stockcharts)
Chart 3: Nasdaq's daily chart as at Feb 3, 2014 (Source: Stockcharts)
4 comments:
Hi Alex-gong xi fai cai-Whata greeting for the year of the Horse.What do you think is the entry point to jumpin ?When the Dow hits 1500? I sold lots of counter one week b4 cny.Think i should enter now? What is your personal view of the market?
Hi Alex,
What's your view on MKH?
Buy within a rally wave
Hi billyboy
I am positive on MKH since reading the Edge (link below). Of course, everyone knows about Hwang DBS's very bullish report on the stock. It valued MKH at RM5.40 a share and, at the same time, it called MKH the cheapest proxy to the plantation sector.
Chartwise, the stock had a bullish breakout of the horizontal resistance at RM2.80-2.85 in early January. I will out the target for the present move at RM4.00. Thus, the stock is a trading BUY.
http://sg.finance.yahoo.com/news/interview-mkh-seeks-20-000ha-083004997.html
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