Market Update 04/04/11

STRAITS TIMES INDEX

I had mentioned on my last update on the STI that it needed to clear above the crucial 3120 resistance level in order to negate the BEAR trend.

The Index closed at a conincidence 3120 level last Friday after briefly broken up earlier in the day. Today, the Bulls continued to march, and the Index is now facing a small resistance at 3140, the 100-days moving average (SMA).

A push above the 100d SMA would mean that the next resistance would be at 3180 to 3220. However, do expect some profit taking to take place after a 3-week strong rally to current levels.

Support for the Index would now be at the crucial 3120 level.

Short term: Bullish
Mid term: Turning Bullish
Long term: Neutral

HANG SENG INDEX

HSI staged a remarkable reversal since my last update. I had mentioned that HSI needed to remain above 22400 level to avoid slipping into a downtrend.

Indeed, since that day, the Index had embarked on a remarkable 1600-pt rally to the 1st immediate resistance of 24000, which I also mentioned in my previous update.

HSI is now trading slightly above the resistance level, and could be set to test the next level at around 24400.

If this Bull run is to continue, HSI should find good support from 23800 to 24000 level for some consolidation, before charging up again.

Short term: Bullish
Mid term: Bullish
Long term: Turning Bullish

DOW JONES

Nothing much has happened to the DOW since my last update.

As expected, consolidation took place, and it seems that the Index had no problems holding out the crucial 12000 support level.

In fact, the Index is now on the verge of breaking past the recent high of 12400.

As breakout would indicate a bullish target of around 13100.

Short term: Bullish
Mid term: Bullish
Long term: Bullish