The Regional Market has break new highs last week and Dow Jones was closing to 10,000 to 9,917 before it pulls back down to 9600 level. Curently as I write this blog, Futures is trading at 1213.50 for Spot month. Which seems support at 1210, but if tonight US market continues to drop. The Next Support level will be 1205.
Personally I think the market is doing a slight pull back and testing the support 1210. if it doesn't break, it will go up back to 1230, and if the momentum continues to be uptrend, 1250 and 1300 is possible in the long term.
Charts shows momentum and volume and getting slighly weak due to the less than expected news from the US Economy, its not too bad, so maybe just a slight pull back.
In Summary, the current Support is at 1210 for CI and Futures, Resistance at 1225 for both.
1st Support is 1210, 2nd Support is 1205, 3rd Support 1198.
1st Resistance 1220, 2nd Resistance 1225, 3rd Resistance 1232.
Market wouldn't fall too badly as long as the Futures is still 4 or 5 points premium of the CI Index. What goes up must come down, as pull back. Also I am testing this formula that if US DJ Drops 50 points for example. our worst case Scenario for CI would be to drop about 10 points.
And if DJ Went up +50 points, our CI/Futures Index also go up maximum 10 points. That was the case when CI went up 10 points and breaks high at 1231 last week, then it soften down.
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