Weekly Wrap

For the week, the US three major indexes all gained more than 2% and hit all time high again( for DJI and SPX), Asian three major indexes are relatively weaker. The shanghai index slid about 9.5% its last two month high, HSI dropped about 8% from its last two month high.

Interestingly, STI basically stayed flat in the past two months, we are kind of indecisive to follow US or HSI and SSE. From Technical Analysis perspective, SSE has dropped to its 50% fib level @2197( the period from Dec 2012 bottom to this yr high), whereas HSI rebounded last week. It could provide us more steam if HSI and SSE were to rebound. That would put all indexes "in line".

For coming week, continue watch STI trading range 3300-3260, close beyond this range( up or down) could give us clearer direction.