Market has been doing very well last week, especially after the lower unemployment rate, and the highly expected 25point rate cut by the FED.




Clearly by looking at the chart of Dow Jones, it is already in a short term Up Trend. There are a lot of other ingredients that support this which i will come to it later. As for now, there are something that we should be concern of.

The Dow Jones has been in the Over Bought range for quite some time. And there is a high chance for me to believe that it will pull back soon, especially when the price is currently toying at the SMA200.


I'm expecting the trading range between 12750-13050 in the near term.

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Let's talk about the things that help Dow Jones in it's bullishness look.

I would say the GOLD and US DOLLAR helps a lot here.




GOLD ..... is a ........ goner.
Immediate resistance has been penetrated at 875.

The only thing is, it is currently oversold, and might stage a temporary dip.

I'm not sure where it's next support will be, as there isn't a clear line. Am expecting the SMA200 will be the next support..... though it's a bit far away.











US Dollar is the other main factor that helps the US market in its current bullish trend. US Dollar index has just break to the upside from a Descending Triangle.

Immediate support of the trend line is created from the pass 5 trading days, whereby price holding pretty strong and rebounded at every instance when it tries to break at the $72.50. Furthermore, this region marks the current 30SMA and 50SMA.

My Prediction? Seeing that the height of the Triangle is $2, this will be the expected price target from the breakout($72), which is $72 + $2 ==> $74. Thus, am expecting a trading range between $72.50-$74.00.

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The only thing which I'm afraid of, is the OIL





Yupe. The oil has been toying around at the Resistance at $120 (sorry about the picture. It's not century resistance at $200. Typo.), when it is extremely overbought, and I predicted that it will pull back last week, and it does.

Now that the pull back has been done, and the over bought is over, what worries me is the current Morning Star formation, which is a very strong bullish sign. Will it breakout the $120 resistance this time? I hope not.

Well, if it does, be prepared to take profit on any LONGS that you are holding.

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Let's get back to Malaysia for a moment :)



We can see a clear up slope trend line supporting the price movement. That should be able to act as the immediate resistance around the 1250. Coupled with the SMA20 and the SMA50 around that region, I believe this 1250 resistance should be pretty solid.

And if KLCI were to move upwards, Immediate resistance is seen at the 1350 area. The horizontal trend line and the 200SMA clearly shows this.

Expecting a swing between 1250-1350 in the near future. Good to buy the dips when price touches 1250, and sell on the peak when price hit around 1350.

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[ For a list of free candle stick patterns scans throughout the US market, please visit my BETA website ==> http://lionel.chimou.com/free_candle_scan/ ]