Yesterday price action does not give any confidence that a corrective rally is underway and this is a second count ever since the downtrend started. This not only indicate a bear market that is heavily dominated by sellers but also the lack of interest of bargain hunters. Downward economic revision on the US GDP may have been one of the factor here. With hindsight, our short position was good but we have covered this due to event risk that the Federal Reserve
proclaimed a dovish tone. Suppose another flush to the lower trend line
playout, we will be a happy bargain hunters. Meanwhile, we sit tight to take the next opportunity to either have a short term short position or just watch how the market implode.
Below are key levels that we will continue to monitor and this will change depending on price action.
Daily Resistance levels:
• 100 dma at 1147 / 50 at 1129 and 20 at 1102
Daily Support levels:
• Lower BB line at 1069