While many question the sustainability of the recent rally, we believe it is far from over. Small correction may occur with a first support at 879, accumulate on weakness. In addition, volume of the index shows no sign of weakness in accumulation. Our target for S&P 500 is 941.
S&P 500 has recorded the longest streak of weekly gain ever since the peak at Oct 2007. There were 8 gains out of 9 weeks since the recent record low 667 in early March.
The buyers outnumbered sellers considerably as evidenced by the crossover of channel in late April (yellow circle).
Unlike Hang Seng Index, Nasdaq and STI, the retracement of 38.2% is yet to be witnessed. Although its rally lags most of the regional indexes, we believe it is just a matter of time for 38.2% retracement.
Sponsored Links
No comments:
Post a Comment