Weekend Roundup

Good evening all! Just back from a nice weekend. Tired as hell but looking forward to this week ahead at work!

I like what I see on the STI. Weekly chart shows a buy signal with nice volume and I am expecting some resistance and pull back as it heads towards 2550-2600. It does look like a pull back is coming with the 100MA on the weekly chart hovering above, and 2424 as a very strong resistance turn support.

The daily chart shows pretty much the same thing with the market reaching an overbought position so a healthy retracement would be nice for the next push higher to the next resistance!

The DJIA has also reached a resistance level and is overbought level. Do remember however, in a bearish market it can stay oversold for a long time and in a bull market markets can remain overbought for an extended period and should not be taken as a buy or sell signal, especially since indicators are usually late.

So bottom line is, expect healthy pull backs which should not come at any surprise even as the momentum is riding strongly on the upside. Remember in a few audios back I shared what the STI had in 2003 and that the chart pattern that is developing then is exactly the same. It is STILL going in line as it happened then.