Last Thursday DOW dropped 300 over points, are you conern?

Last Thursday DOW dropped three hundred over points, NADSAQ and S&P dropped 2%.  Friday DOW dropped another 0.42%.  DOW had came down about 4% from it peak.  Are you concern?

Just ask yourself, you wanted/planned to enter when DOW stay above 17000?  If you no, I no, fund managers no....then how?  Yes, you need the index to come down, isn't it?  This is how the game play.  This was the reason why when a lot of analysts said DOW will reached 20000, I said hold your breath.

Let's go step by step.  DOW first support is between 16300 (current 200MA) to 16350.  Second support between 16000 to 16060.  Third support 15700.  S&P first support 1920, second and its major support at 1860 (current 200MA also there).

 

China and Hang Seng recently going strong because of Shanghai, Hong Kong Stock Connection 沪港通。Remember I mentioned about this?  http://achua138.blogspot.sg/2014/06/2014-half-year-review.html    I believe 沪港通 is only the first step.  We are going to see more connection as long as China government see positive outcome.  深圳, Hong Kong Stock Connection?  What about China, Singapore Stock Connection?  Watch out if it happen.  For the time mean, watch the resistant levels that were drew on charts. 

 

STI recently follow  closely with  the China indexes.  But again, as I always said you must still respect and knowing who is the big brother.  First support for STI at 3300, second support 3220.

 

 Last but not least, beside any unpredictable incident, war, disaster......one important thing that I have been monitor very closely is interest rate.  When will US raise the interest rate?  http://achua138.blogspot.sg/2014/06/2014-half-year-review.html  Yes, CPI, USD, 10 years US Treasury.  And do not forget, stock market moves ahead economic.