Straits Times Index: Overhead Resistance

Last post on the STI - Dire Straits - identified a break below 3120, and called for further declines. After reaching a low of 2970, there was a nice rebound. The same 3120 overhead is now serious resistance. Expecting price to correct with support at 3050 zone. A possible inverse head and shoulders reversal pattern is illustrated on the chart. An eventual break above 3120 will make this an A-B-C style correction implying higher prices ahead.

S&P500 Short-Term: Update

Refer to previous post, suggesting a short-setup on SPX. Although, the 30-min RSI never made it to 70, price moved down swiftly, taking the lower trendline downriver. Around 1300 support, a nice back-test followed. If you've taken a short position, move your stop down to the back-test level to protect your profits. Failure of 1300 zone may result in 1275. This move down, if it happens, is likely to be choppy.

Shanghai Composite: Upside Breakout!

Last update on the Shanghai Composite noted resistance at 2950. After a decent correction, SSEC jumped up 1.8% today on good volume, and breaking out above this barrier. Target for this move up is 3180. But first, there may be a back-test of the breakout. Also, the medium-term picture will get very interesting around the target levels. Stay tuned!