Maintain short positions, as the correction phase remains incomplete. The E-Mini Dow has halted the retracement of the past two sessions, ending the latest session 418 pts stronger at 29,410 pts. This was after it generally trended higher for this whole period from a low of 28,858 pts posted earlier during this session. Despite the positive performance, we still believe the index continues to trade in an incomplete correction phase that had set in after it recently hit a historical high of 30,000 pts on a very sharp 1.5-week upward move off the 200-day SMA line. Chances are high this correction phase will be extending for at least another 1-2 weeks. We maintain our negative trading bias.

We recommend traders stay in short positions. We initiated these at 28,992 pts, or the closing level of 12 Nov. We are revising the stop-loss higher to above the 29,800-pt threshold.

The immediate support is revised to 29,150 pts and followed by 28,850 pts. Meanwhile, the immediate resistance is pegged at 29,600 pts. This is followed by the 30,000 pts record high.

Source: RHB Securities Research - 16 Nov 2020