Quick analysis on 31/02/12

Quick view on the markets.

Dow Jones bounced off the downward sloping trend line and 20DMA. And also managed to close above the upward sloping trend line.

How do I get the trend lines, see zoom out view here.

This shows that the bulls are still strong and fighting everything to keep the market above the upward sloping trend line.

As for STI, it broke out the resistance level last Friday but yesterday closed way below the resistance level which doesn't confirms the signal to long.

Speculative view on STI:
It may move higher to test the resistance again. But note that profit-taking will be strong today as some players are hitting their contra period.

Action: FIFO; or sideline. As highlighted last Friday, pennies will be in play and are still in play.