Sellers Reappearing
Another quiet session in terms of volatility across the equity index pits, but the underlying situation is a touch more to the bearish side.
The SPH is currently below 1350, which is a major support area. If we were to settle below this level, it will prove to be a strong short-term negative in the upcoming sessions. I think the odds are for a test of the 1338-1342 level by the end of today’s session. However, with the performance in the DJIA, I would think we may have stops and starts on both sides of the trade. In the end analysis, today’s trade will be important because of where it leads us over the next few sessions. In other words, there is a lot of maneuvering by traders and funds today, leading to a very choppy trade. But Thursday and Friday should bring a more defined picture of where we are headed.
In the meantime, as you can tell by reading this, I am confused.