Dow has logged a seventh consecutive rise and small caps as measured by S&P600 index have just closed at a record high as of 11 May 2018.
Our Singapore market has also done us proud too by becoming Asia’s best performing equity market on 2 May 2018.
In view of the above, is it a screaming buy for our Singapore market, especially our small caps which have under-performed?
Let’s take a closer look at the charts and my personal action plan.
S&P500 closed 2,728. Day range 2,717 – 2,733
Based on Chart 1 below, S&P500 seems to have broken above a downtrend line established since 26 Jan 2018 and has just breached above its recent high 2,717 on 18 Apr 2018. All the exponential moving averages (“EMAs”) have stopped their declines and are moving higher. 20D EMA has just formed a golden cross with 100D EMA but …