SET Index : Needs to hold 1055 this week if the risk of a dip to 1000 is to be reduced
August 9, 2011 Leave a comment
With key support on its weekly chart from around 1025 to 1033 any thing less than a rebound to 1055 or better will increase the odds of a trend break and pullback to or a tad below 1000.
The US markets simply must bounce tonight if emerging markets are to start the technical rebounds pointed to by Tuesday’s day charts of most markets (Not the SET though)
The reaction to what Bernanke and the Fed says tonight will be key. And guess what. The markets want QE3 already! Even if they get kind and soothing words and actions and no clear date for QE3 the markets should still hold or bounce to some extent.
If however the Fed disappoints the market then we dare say the Dow will hit 10,000 this week or early next, which should see the SET go under the 1000 mark temporarily. Maybe 980 or so.
There is a plain to see crisis of credibility in Western leadership, but Bernanke was not voted in by the people, so we suspect he will give enough to calm markets tonight and kick start a technical rebound.