Dear readers, Notwithstanding my cautious stance in the general market, I have raised my allocation from 35% on 14 Oct 2016 to around 89% on 28 Oct 16 on stocks with potential near term catalysts. Read on my technical outlook on the markets. S&P500 Index Just to recap what I have mentioned on 14 Oct 2016 (see HERE), I wrote “it is alarming to see that 21D and 50D exponential moving averages (“EMAs) are trending lower with 21D EMA forming a death cross with 50D EMA. 100D EMA started to turn flat and S&P500 closed below 100D EMA yesterday. It is noteworthy that S&P500 has not closed below its 100D EMA for three consecutive trading days since 1 Mar 2016. Thus, the price action around its 100D EMA is worth watching. Another bearish factor is that amid negatively placed directional indicator (“DI”) reading, ADX has risen from 20 ......