The 6 major market indices have drifted significantly lower over the week, with the 3 Asia indices (STI, HSI and SSEC) all below their 200-day moving average. While US markets have also closed much lower for the week, however their level are still well above the long-term uptrend line of 200-day moving average.
STI (Singapore): Below 200-day MA (5 days), testing 1st support at 3070, 2nd support at 2934-2970.
HSI (Hong Kong): Below 200-day MA (5 days), testing 22,200 in mid Mar 11.
SSEC (Shanghai): Below 200-day MA (14 days), consolidate for past 2 weeks, 11.8% down from 18 Apr 11 high of 3067.46.
DIA (Dow Jones): Below 50-day MA, 6th week drop, -6.9% from 2 May 11 high.
SPY (S&P 500): Below 50-day MA, 6th week drop, -7% from 2 May 11 high.
QQQ (Nasdaq): Below 50-day MA, 6th week drop, -7.9% from 2 May 11 high.
Note: US markets were down about 13% from the Apr 2010 high before Fed announced the QE2 in Aug 2010.
The Singapore Straits Times Index
STI continue to drift lower, closing the week below the 200-day moving average. This is an unexpected move. It will begin to test the 1st support at 3070 next week, and if it break that, it will test the 2nd support at 2934 - 2970. The selling on Friday was intensified in the afternoon session. Let's watch coming week's action, i'm expecting STI to consolidate around this level and rebound from here.
The Hong Kong Hang Seng Index
HSI closed lower than the May 11 low and will be testing the 22,200 level in the coming week.
The Shanghai Composite Index
SSEC continue to consolidate for the 2nd week at 2700 - 2750. 2700 is expected to be strong, however it's still trading below the 200-day MA. Currently SSEC is resisted by the 20-day MA around 2770.
The S&P 500
SPY closed lower for the 6th consecutive week. 126 is the next support level.
The Dow Jones Industrial Average
DIA closed lower for the 6th consecutive week. 116 is the next support level.
The Nasdaq
QQQ closed lower for the 6th consecutive week. 54.35 is the next major support level. QQQ is expected to be closely watched next week as it has closed slightly above the major support line at the 200-day moving average. A break of this level could trigger more selling.
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