Euro Zone Debt fears still in the air, sending Global Equities to Negative Territory this month of May. Usually May is the one which we get positive gains.
The selloffs has been daily with a huge 2.5% last thursday, followed by an almost 1%. Making all Equities to a short term downtrend momentum, might be affecting also the Medium term trends if selloffs occur.
To my standpoint, I personally object others which are saying its downtrend already, I still have hope based on my charts that it may be the bottom already short term. I might be correct, may also be incorrect.
For now, I think DOW Jones got a support at 12150 level, with a very interestesting RSI of 35. Still waiting for further cooldown on EU Zone before sending a BUY. But looks cheap at 13.5 P/E ratio.
DOW Jones Weekly charts, sending RSI level to 52, Usually at Weekly Charts, BUll market correction usually stops at 40-50 level, before setting up the rally, here, hopefully it happens again. Must not set another selloffs as we are currently are at a critical level of Short Term and Medium term uptrend.
A fall below 12150 sends us to the Medium term uptrend support of 11400-11500.
I am trying to change Technical Styles for RSI levels:
For Dow Jones above : 14 days RSI
For S&P below: 5 days RSI
Still testing if 5 days RSI could be a better Technical Outlook forecasting tool.
Using 5 day RSI Level, S&P is now at an oversold level, As I've said, this RSI(5) is still on an observation stage if its more reliable to forecast future movements. Overall, S&P still uptrend ( Im still hoping that my charting is correct, some others already triggered a CUT-LOSS signal), a fall below 1300 will send us short term downtrend to a support of 1250.
S&P Weekly still in uptrend. A fall below 1300 short term uptrend (Green Line), will send us to a low of 1250 for the Medium term uptrend support. Also, using RS(5), it is triggering a BUY status with an RSI level of 29. Let us see further if we are correct. A set of EU Debt sell-offs will invalidate our current Observation.
PSE I believe is the strongest among Asian Countries. Thursday I remember, AU,HK, China has 2.5% down a piece, our PSE that time started in the negative territory and even closed .7% higher to the ground! I don't believe it.
Still I'm biased, not touching PSE as long as it touches the 4300 level and the 4330 Resistance. MACD has no signs of strengthening yet.
Trade the range of 4180-4330. Or at best - HOLD.
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