Lunchtime Report
SET 1089.94 (-0.34)

SET opened higher (1095.21) before there was a sell-off in the early morning. The index went down to 1080.98 before bouncing back up and trading in the 1088-1092 range. Leading sectors today are the Auto, Property Development, and Steel sectors. As said, I am not expecting any big moves just yet, given what happened yesterday, unless something drastic happens in the country. SET is likely to go sideways for a short time before moving higher. The bull is back on since SET made a higher high above the 1080 level yesterday. We see the 1080 support intact for now, which is a good sign. I would start to worry again if somehow SET manages to moves below 1050, but I don't think that will happen.

The ascending triangle pattern that formed over the past month was definitely hard to spot. It looked like a consolidation before moving down more, but it turned out to be the opposite. First, it looked as though we would see a double or even triple top pattern, but the upward breakout last Thursday would have invalidated that idea. I bet there were some analysts who drew an upward channel, given last Thursday's results, but they would be wrong. So with this huge runaway gap, we might see a move down to as much as 1050 which will fill the gap, but, again, I am not leaning towards that idea so much. I think we're going to trade within 1080-1100 in the short-run for the most part. (I consider yesterday's move a runaway gap and not a breakaway gap cause the upward breakout already happened. So even though it looks like it could be a breakaway gap, technically, I would have to consider it a runaway gap.)

As for other news, the US manufacturing index climbed higher than economists' forecasts, which gave a lot of confidence on the US recovery. The US market was closed yesterday for Independence Day, which meant that I got to listen to Charlie Rose Holiday Marathon. Hooray. Best Interviewer out there.