However I post on my blog saying that a drop may come in. Then 8 Nov 2010, I said on my blog that a blast through happen and if it don’t stay it will correct. Indeed it dint continue to move up for the next 3 days and on the fourth day, which is the 12 Nov it came down. Subsequently on 15 Nov 2010 onwards , I did a few posting on the market may head down more.
The blast through on 8 Nov 2010 make the market wanting to create a higher high and I knew that a market cant move vertically upwards, so I was cautious. Then the next 3 days, the market slow, it move sideways and on the 12 Nov, it came down. This is when I confirm that a drop will come in.
Right now we see a nice consolidation; a up move will come probably next week. Now it is like shaking off some dust to make itself lighter to run a longer distance.
This is a comparison of US dollar index and Dow Jones Industries. I purposely made it in a line chart so that the difference can be seen clearly. The stock market really do move with the dollar Index. The dollar index goes high, the market drop. Observe carefully the relationship.
Next we have a comparison of the Dow Jones Transportation and the Dow Jones industries. Look at the King of king (Dow Transport), a H&S set in but it break out, and formed a new high. It totally break out of the high that is set in the beginning of Nov. Dow Jones Industries as a follower too have a H&S, and it will follow the leader.
Here we have a comparison of the Dow Jones Transportation and the S&P500. Look at the King of king (Dow Transport), a H&S set in but it break out, and formed a new high. It totally break out of the high that is set in the beginning of Nov. S&P500 like the Dow industries is a follower too have a H&S, and it will follow the leader.
Last of all, we have Dow Jones Industries and the STI. The STI have not shown a H&S yet,but there is a clear strong support level at 3120.So if it follow the US indices, up is the way to go.
