SET Index : Midday Update Sept 28th

Yesterday we said : “Anything less than a close above price resistance at 941-942 by Thursday at the very latest (and preferably much sooner) will be a bad omen for the market. A break above 942 will go hope for an advance to the first gap at 947-955, an even then it will not be enough to really change matters we are afraid.” We also noted ” A failure to pass 942 by Thursday should push the Index back down again to 880 or lower.”

For today anything less than a close above 945 will be dangerous, and could easily see a swing down to first support at the 912-916 range. Watch how 933 handles this afternoon, with a failure here pointing to 920-922.

Buying has not been very impressive on the rebound. A large number of stocks are struggling to pass even initial resistances let alone create strong rebound formations on the daily and weekly charts. As such much caution is advised as we approach the weekend.

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