We use PE ratio (Price per Earning) to gauge whether the market is over value or under value. This information is helpful because it gives us an idea whether we should go long or go short with the market.
As a rule of thumb:
Summary of Major Stock Market Indices PE Ratio.
STI is in the process of forming a Double Tops and currently testing the 50D MA support at about 2,920.
The next support is at about 2,860 which is a 200D MA followed by the Double Tops neckline at 2,701 (which is also 78.6% Fibonacci Retracement Level). Breaking down the neckline support will send STI to 2,363 level.
STI has been holding well for the past few days. Is STI consolidating for the next bull run or quiet before the next big storm? Let’s look at the three key indices…
Dow Jones Industrial
S&P500 ETF (SPY)
NASDAQ
What commonality do we see?
Let’s look at STI. Is the chart look familiar?
Someone will tell me “Hey! The Head and Shoulders has not been formed on STI yet!”
True! But my reply is “Do you think STI can escape from this storm and go on the bull run?”
STI: FASTEN YOUR SEAT BELT! STORM IS COMING!
Bull or Bear supporters, feel free to comment!