Sector Reviews after X'mas Rally

Dear SGWiseInvestors Fans and Readers,

Merry Christmas! The Christmas rally as predicted did come true. Now the market is experiencing low volume rally to the New Year. Emails received asking if when can they short the market. Not now. The price action and volume indicate we will have the rally till next week. There is no selling climax behind the scene thus we can expect more rally to come. RSI and price action indicate that there is still room for more upwards and momentum of the trend is strong. 

Market Level

INDU – DOW Jones

Going up?

NASDAQ

Upward trend?Nasdaq is now at the support of the RSI at 57.85. We can see that it is moving sideway. We hope to see the trend curling upwards to indicate more momentum. MACD is indicating that there will be a crossover. This meaning BUYING SIGNAL will be triggered for MACD users.  We forecast that the Nasdaq will breakout at 4800 and more upward movement in weeks or even days to come.

Sector level

From the graph that we attached for the overview of the market sectors. We can say that the strongest is utilities. Energy sectors is not a pick now. From the chart below, there is a high chance that it will not bypass the 200SMA hurdle. We should see it going down soon unless volume is there to push the prices higher. Health care looks good as it has met its support at near 200SMA and this seems like it is rebounding to higher high soon. Material is having a Doji which means that there may be no buying coming and may see a retracement soon for buying to comes in. The rest of the sectors looks promising .. every dip is a buying opportunity.