Early this month, US and China announced a trade war truce for 3 months and a few days ago, China announced that it is cutting US car tariff to 15% (a whopping reduction from 40%). All these should bring cheer and optimism to the markets and yet it did not. The warning signs that all is not well are there. We will need to see a major lift from current levels before we know the worst is over.
The charts of various major markets indices speaks for itself. Most are poised to roll over. Perhaps only the Chinese and Hong Kong markets (which had been beaten down to low levels now) may not suffer as much and maybe even be finding their footings.
Will STI follow the East (China and Hong Kong) or the West (US and Europe)? It remains to be seen. Watch for the critical support level for STI at 3000. Any breach of this level means it's better to stay safe and stay out for now. (Unless you are an astute short term trader :) )
Straits Times Index |
Dow Jones forming a Double Top (potentially bearish) |
Nasdaq forming a Head & Shoulders (potentially bearish) |
German Dax is already in bear territory |
Nikkei 225 - Formed a Double Top (potentially bearish) |
Hang Seng Index - Bearish but could be bottoming out |