DOW and STI update 29th Dec 2011: On course for next leg down?

DOW JONES
DOW has tried and tested 12300, but formed a reversal candle at the resistance. Last night's selldown in DOW was the confirmation candle.

Nearest support for DOW would be the 200MA at around 11950 to 12000. Next support would be at around 11740 level. A breakdown of that would see DOW back to test 11230.

Resistance level remains at 12300. A breakout of the level would see DOW testing their 6-month high of around 12740.

Short term: Turning Bearish
Mid term: Neutral, trading in a range
Long term: Slightly Bullish

STI
STI has failed to clear 2680 as well as the 20MA despite having a "Santa rally". Index remained weak as long as Bulls are unable to recapture 2680 level.

Near term support at rising window 2650, a more significant support for STI remain at 2600. A breakdown would then see STI test the recent low of 2520, formed in October.

Resistance of 2680 is proving a tough nut to crack, though if STI manage to break above 2680, it will also meet up will various resistance levels from 2720-2750, before testing the previous 'high' of 2790-2800.

Short term: Remains slightly Bullish, unless index breakdown from 2650
Mid term: Slightly Bearish
Long term: Remains Bearish