Commentary

a big surge by DJ, any pre-signs? is this the end of the bears?

pre-signs:

DJ n ftse did not give any clear signals except being in the oversold region. HSI, Nik n STI on the other hand gave reversal bars for the last 1-2 days, which increases the chance of a rebound.

Trend:

ST trend for all is still bearish. DJ hit my rebound target, so some form of cooling down will set in. FTSE also hit my target, and is on the weaker aspect. HSI, Nik,STI all hit targets in the early opening session, so like DJ, some form of cooling down will take place.

i will class this as a bearish rebound, in order to turn this bear around, indexes need to maintain gains and strike new highs. most traders will class this as a DCB as we are all testing base support. in other words, it is still too early to turn bullish.

Conclusion:

shorts turn from safe to cautious mode. longs turn from cautious to on alert, wait for potential strong rebound signals.

many shortist are covering part of their positions as this surge affected the bearish momento, resulting in the morning panic gap up as risk level went way up for them. longs are not entering yet as signals are not ready, most buys are entered by individuals who are afraid of missing the run. no hurry. intraday shortist are always significant in a bearish trend, but as the term states, highly unlikely for them to carry over, whch might again create opening gaps tml for the stronger counters.

enjoy...Heiwa