Ernest’s market outlook (25 Nov 16)

Dear readers,

S&P500 hits record high! Will STI move higher?

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S&P500 Index

Just to recap what I have mentioned on 11 Nov 2016 (see HERE), I wrote “S&P500, after closing below its 100D exponential moving average (“EMA”) for six consecutive days, surged with volume and closed above its 100D EMA (currently 2,137) for five consecutive days. 21D EMA has just formed a golden cross with 50D EMA on 10 Nov 2016. Another positive feature is that the directional indicators (“DIs”) have turned positive with ADX closing at 28. S&P500 has closed above 2,157 for three consecutive days. Although time is required to observe whether the golden cross is sustainable and whether S&P500 can continue to close above 2,157, S&P500’s chart looks more positive than two weeks ago. My personal view is that the bearish tinge which has clouded the S&P500 chart has been negated….

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