Maintain long positions. During the intraday, the E-mini Dow generally moved lower, albeit at a slow pace, with the high and low posted at 29,879 pts and 30,150 pts. This was before it closed 207 pts lower at 29,906 pts – slightly below the 30,000-pt psychological level. While the downside breach of the 30,000 pts is not decisive yet, it still warrants a caution for the bulls. Should there be a negative follow-through in the coming sessions, ie a downside breach of 29,850 pts, this will likely signal that the index has reached its multi-month upward interim top move. If this happens, this will open the door for a correction phase to set in. For now, we keep to our negative trading bias.

We recommend traders stay in long positions for now. We initiated these at 30,033 pts, or the closing level of 11 Dec. For risk-management purposes, we adjust the stop-loss slightly higher to 29,850 pts.

The immediate support is revised to 29,850 pts and followed by 29,500 pts. Moving up, the immediate resistance is set at 30,500 pts and followed by 29,500 pts.

Source: RHB Securities Research - 23 Dec 2020