Sunday, January 17, 2016

US Markets: Bearish Reversal

DJIA broke its uptrend line, SS support at 17500 in August last year. Despite a spirited rebound in October, the index failed to reclaim its uptrend line. Last week, DJIA plunged to the lows of August & September 2015. Having cracked below the "horizontal" line, AB at 16000 last Friday, DJIA must stage a convincing recovery next week. Failure to do so could see the index to retest its August intra-day low of 15400. Beyond this level, the bear market begins.

Chart 1: DJIA's weekly chart as at Jan 15, 2016 (Source:

With slight variation, the same pattern appears in all the other major indices. Next week will be a critical week for the US markets - and the rest of the world markets.

Chart 2: S&P500's weekly chart as at Jan 15, 2016 (Source:

Chart 3: Nasdaq's weekly chart as at Jan 15, 2016 (Source:

Chart 4: Russell 2000's weekly chart as at Jan 15, 2016 (Source:

Despite having a stronger technical outlook at the start of the year, our market had also succumbed to selling pressure. If FBMKLCI were to break below 1630, I believe we could revisit the August low of 1500 again.

Chart 5: FBMKLCI's daily chart as at Jan 15, 2016 (Source:

1 comment:

lai said...

Hi Alex,

May i have your view on Supermax? Seems like a late comer to me and despite of several " promotions" by some brokers, i'm not conviced. What say u?