Will their new highs be sustainable?
First let's look at US and Hongkong index. They are singing the same tune except that its quite obvious the asian index HSI is relatively stronger than US index DJ (compared to their levels 1 year ago).
Next let's look at DJ which reacted well to a bull signal. Normally if market sentiment is bearish, when buy signals appear out of bullish setups, they will fail. However this time the buy signal did not fail.
Finally, let's take a closer look at STI. View of STI:
Above 3220 - bullish (at least test old support line)
Below 3100 - bearish (likely severe correction)
In between - neutral (with slight bullish bias)
I remain bullish (since july) on market until dropping below 3100, which could mean major sell signal even for longer term investors.
PS: in oct i said sti will rally 150 points to 3300 then selloff. it really cross by few points then drop to 3120. media blame it on north korea firing missile. oh pls they just happen to be scapegoat. the correction is already decided two months ago.
