Bulls vs Bears - Who will win? Dow Jones Index, S&P500 and STI

Dow Jones Index closed down -137pts today on high volume although it tried to recover from a near 300 points drop early on in trading. It needs to close at the blue spot indicated in the chart below in order to show it has strength and that the risk on rally is back on. The huge drop triggered a lot of bear technical indicators and its going to be a technical market from here on. At this moment, the path of the least resistance is down. The next support for the DOW is at 11600pts. Traders/Investors should take this opportunity to sell into strength until proven otherwise. Do not fight the tape. I remain a bear unless the Dow Jones Index closed at somewhere at the blue spot ! One should not go long at this moment.

Here is a chart of the S&P500. It has a hammer candlestick. As we all know, a hammer candlestick pattern means a reversal of some sorts. The hammer will not be valid if its low is violated. I will be going long if S&P500 closed above the blue spot. At this moment i remain a bear seller.

 

I have a post on the Straits Times Index last week. It remains very weak as it closed down huge on Tuesday. It was down -79pts. We should look for it to recover slight on Wednesday trading. Investors should look to sell into strength if STI failed to closed above the blue spot indicated in below chart. I will be a buyer on at that level.