STI and HSI Charting the Move for 15 Nov 2011

It was lacklustre day in the US Markets in the last session. S&P 500 seems to be trapped in a Triangle but is expected to breakout soon. STI and HSI are both expected to mimic the similar lacklustre performance. STI is currently down by 0.35% and it was a gap down. I believe that this is a correction and I expect the STI to head higher from here to close the gap and hit 2850 region before turning down for another correction.

Similar performance can be expected in HSI. I expect it to gap down to 19450 region before turning up and heading towars 19800.

HSI EOD Review 10 Nov 2011

A huge sell down on HSI (1054.54 or 5.25%) and the HSI closed just a whisker below 19k at 18963.89. Although the 19k has been breached, I believe a correction of this down move is to be expected tomorrow unless the US market sells down in a big way today. Nevertheless, the market is not looking good at all. The volume was not really heavy which is an indication that sellers are not done yet. Based on volume, I would say that more downside is quite possible if 19k is broken after a correction.

 

Asian Market Mid Week Review 10 Nov 2011

Singapore’s Straits Times Index and Hong Kong’s Hang Seng Index Mid Week Review

This review is for both the Singapore’s Straits Times Index as well as Hong Kong’s Hang Seng Index as both are moving in tandem and are closely coupled with the US Market.

I believe the S&P 500 sell down in the last session is just the beginning of further selling and it could go as low as 1040 from the current 1230 points. Please see the Review of S&P 500 for further details. Both the HSI as well as the STI are expected to follow as well. It is already evident from today’s sell down in this two indexes. Point to note though is that HSI stopped short of 19k which has been providing support and resistance recently. I had published a post titled Battle of 19k and take a look at that post for details of the importance of this level. If the HSI breaks this level to the down side, this could turn into a huge sell down and HSI could go as low as 15700 region. If the 19k holds, the up trend may continue for a while but not much longer. So the upside is very limited at current levels.

We are at a point where those who are bullish or are long term investors should remain cautious and probably reduce their holdings and be prepared to buy when the index is at a much lower level. Again I like to highlight that this is my view and not to be taken as investment advice and every investor should do their own analysis and make a decision based on their own risk profile.

I’ll be updating the 2-Year charts for these indexes when I get some time. Maybe over the weekend. So check back to get updated on that.