The recent Asian indices weakness may be attributed to Nikkei weakness. Nikkei recently touched a high of around 15000 peak which I mentioned as a temp resistance. The best place to short Nikkei is definitely at 16000. Now it is at 13875. It has dropped 1000 points since the 15000 peak.
Of course, Nikkei is now one of the most exciting trading index now the world follows. If you are looking into Asia, we better pay attention to Nikkei too. We think that recently quite a few singapore stocks went down a bit because of this weakness in Asian indices. STI reaches a high of 3280 before retracing to 3241.
But having said that, we feel the short term bull run is intact. Nikkei will once again revive itself after running like a wild horse from 12200 points.
Today looking at our chart based on our Cash Ringing System (a system to identify short term trend), Nikkei short term downtrend these few days may have halted. This is good news for short term players. Look at our chart below.
We think that STI should pick itself up to head for 3300 again, should there not be any big problems to US's non farm payroll this Friday. Please pay attention to it too. It shall reveal how the QE episode is heading too.
We shall also give our prediction for Non farm payroll in our blog soon... stay tuned.