2830 will be the level to watch for the STI today
Posted by admin in Forex Analysis, Futures Pick, Market AnalysisGood Morning,
The recovery in the STI was rather amazing as the market opened at 2770.12 which is Day Low of the day and rallied from the bell, to close at 2835.51, interestingly, at Day High too! For my grads, not only we chose to cover our short positions that we established since Monday but also turned long when the SIMSCI broke past the 333.5 level. Another S$400/contract was easily made from yesterday movement. Congrats to those who made.
For today, our grads will be looking at 2830 as the KEY SUPPORT for today as the Dow continued its slide to close down 96points to end at 9774, a closing not seen late 2009!
Here is the overnight US commentary;
NEW YORK (CNNMoney.com) — Stocks finished lower after a late-session retreat, as investors piled out of a downbeat quarter that ended with Wednesday’s session. The major indexes had teetered on either side of breakeven throughout the day as investors weighed a weak jobs report against an improved European bank outlook that provided earlier support.
But all three indexes turned down sharply as the session ended. The Dow Jones industrial average (INDU) lost 96 points, or 1%, to finish at 9,774.02. The S&P 500 (SPX) closed down 1% at 1,030.71 and the Nasdaq (COMP) lost 1.2% to end at 2,109.24. All three indexes’ closing figures were the lowest since late 2009. Declines were broad-based, with 29 of the 30 Dow components ending lower Wednesday. Diversified manufacturer 3M (MMM, Fortune 500) managed to hold an 0.6% gain.
Wednesday’s session marked the end of the second quarter, during which the blue-chip Dow fell more than 10% on concerns about Europe’s debt and the overall global economy. The Nasdaq and S&P 500 each lost 12% in the second quarter. Year-to-date, the Dow is off 7.7%. The Nasdaq and S&P 500 are both down 9% over the first half of the year.
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So with the above, and the Euro reversing partial of its upside last night, traders are to watch 1.2188 for today.. as this level act as the support for now for the currency. Trading below it will most probably act as a catalyst for another round of selling of the financial markets. Watch the Dollaryen too as there is a strong support at 88 level. Breaking below it will bring the NIKKEI down further which in turn may bring the rest of the market down too. Shanghai next support is 2348. It closed below the 2400 level, at 2398.
Without HK presence today, I am not expecting much movement in the market and most probably we are going to see the market gapping down first and another round of bargain hunting might resume like yesterday but I doubt the strength will be that much.
Have a great trading ahead!
Cheers!
Disclaimer applied.
Kelvin Han
V3Go Originator
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