Dow Jones STI charts indicate possible near term correction

Both Down Jones and Singapore Straits Times Index (STI) charts have turned negative in the near term showing signs of potential short term correction.  I say “potential” because technical indicators such as stochastics and w% are showing signs of weakness and have identified near term support levels.

For STI, the near term support is 2701. If price close below 2701 then short term correction would have set in and the next support level could be 65 simple moving average line around 2614.  Using longer time frame indicators such as 30 days MACD and 65 days stochastics, the medium and longer term signals for STI currently still points to uptrend.

For Dow Jones, the near term support is 9992. Both short term indicators for dow jones such as stochastics and w% have reached overbought zones and crossing down indicating possible short term correction.  Take note if dow jones close below 9992 in the next few days.  Near term support is around 9514 level using 65SMA.

For shortists, it’s time to watch out for those support levels when they are broken.

happy trading

rooney