I decide to include the Dow Jones for my analysis of the up coming week.
Dow Jones: Parabolic SAR : Still shows that the market will continue in a downtrend
MA: The 5 day MA is still below the 7 day MA, which shows a bearish trend, however the divergence shows that it might be reversing soon
Bollinger band: Its way outside the band for a while, and is bound to go back in. As the dotted lines represents standard deviation from the mean, hence statically , the stock price should not vary too far away from its mean.
MACD: Its showing a large divergence away from the signal. And in general it signals that there might be a reversal
RSI: its at 19%, super oversold. and looking from the past, a rebound is bound to happen.
As you can see though the Dow Jones is in a bad shape now, but from the charts, a rebound is bound to happen soon . The day should be coming very very soon.
Parabolic SAR : Still shows that market will continue in a downtrend
MA: The 5 day MA is still below the 7day MA, which shows a bearish trend, however the divergence shows that something might be reversing soon
Bollinger band: Its outside the band and will definitely go back in soon, i.e a rebound
MACD: Its showing a large divergence away from the signal. And in general it signals that there might be a reversal soon.
RSI: its at 11%,its even more super oversold than the Dow Jones.
As you can see, the Singapore market does have a trend similar to that of the US market. However I do not think the rebound on the Singapore market will be bigger than the US market just yet. Because, Singaporeans are mostly 'kiasu'. Given the bad market sentiments, most people would not dare to load up on the stocks yet.
Looking at how the signals are all pointing, and how far the index is from its mean, I anticipate a world wide rebound within the next 2 weeks ( lets see ..) This could be trigger by many facors,including possible package to save the economy in the world. Frankly, anything can happen.
I still suggest to hold off the shorting for the time being. I anticipate the rebound to be a big one. It better to be safe than sorry, as this blog aims to use TA is to decrease the chances of making a wrong mistake, thus increasing the the chances of making a right one. Remember that capital preservation is important in investing/trading.
Hold on tight for the next 2 weeks!