US market managed to stage a rally on Friday. The Dow Industrial Average closed at 8280, up 217 points on Friday. Market look past the bad job numbers and are hoping that the Obama Administration is able to come up with a stimulus package that will save the financial sector which in turn will support the stock market.
Our own KLCI index is also making a comeback. The index closed above its 20 day moving average on Friday. The MACD indicator is looking to cross above its signal line, another positive scenario.
Note that the 13 day force index has just turned positive. If the index is able to hold above 867 points, there is a potential for the index to test its upper Bollinger Band limit.
Stochastic indicator is also turning up, indicating short term strength.