To answer the above question, is still early at this stage, but to us, at least not at the moment and the uptrend will be capped for now. Reasons as below:-
1) Overall technical indicators remain weak at the moment with the US index still trading below the Bollinger middle band and the MA 200 level.
2) The second quarter is about the end and historically third quarter is a slow and slightly weak market.
3) World still clouded with negative fundamentals, especially the news on SEC is probing a second Goldman Sachs CDO in addition to the Abacus transaction.
4) The start of World Cup.
We are expecting the FKLI to open higher and today's surge will also give the chance for the cash to close the gap set on 21st May 2010 (Please refer to yesterday report for more detail).
If the market is convincingly breaking through the 1303 level and able to sustain above this level, then for these 1 – 2 weeks, the bears may need to temporary give way for the bulls, failure for this level to be taken out will result in bears relaxing in handling this battle.
So what shall the investors do? For those who have initiated short position, you can still hold on to your short position and look at how the market perform for today first, but if your risk tolerance level is lower, do initiate stop loss above the 1303 level.
For today, the support is seen at 1285 level and the resistance is seen at 1303 – 1305 levels.
US MARKET
Overnight US market regained its posture above the 10,000 level with gains of 273 points, +2.76% on better commodities prices, gained in euro and economic data showed the accelerating growth. The index currently remain below the Bollinger middle band and the MA 200, failure for these two levels being taken out convincingly will result in the DJIA remains in negative territory.
[Reminder: US will release its Retail Sales (Survey 0.2% Vs Prior 0.4%) later tonight.]
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The information herein was obtained or derived from the source that we believed are reliable.No liability can be accepted for any loss that may arise from the use of this report.All opinions and estimates included in this report constitutes our judgement as of this date and are subject to change without notice.
So what shall the investors do? For those who have initiated short position, you can still hold on to your short position and look at how the market perform for today first, but if your risk tolerance level is lower, do initiate stop loss above the 1303 level.
For today, the support is seen at 1285 level and the resistance is seen at 1303 – 1305 levels.
US MARKET
Overnight US market regained its posture above the 10,000 level with gains of 273 points, +2.76% on better commodities prices, gained in euro and economic data showed the accelerating growth. The index currently remain below the Bollinger middle band and the MA 200, failure for these two levels being taken out convincingly will result in the DJIA remains in negative territory.
[Reminder: US will release its Retail Sales (Survey 0.2% Vs Prior 0.4%) later tonight.]
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The information herein was obtained or derived from the source that we believed are reliable.No liability can be accepted for any loss that may arise from the use of this report.All opinions and estimates included in this report constitutes our judgement as of this date and are subject to change without notice.
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