KLCI extended their losses yesterday on continuous selling mainly in plantation (-109 or 1.82%)and Korea over the sinking of a warship. Other Asian is bad too with Nikkei falling 298 (3.06%) its lowest finish almost 6 months. Kospi ended down 44.10 points (2.75%), while Hang Seng Index dropped 682 (3.47%).
The technical landscape of fkli deteriorated tremendously last five days. It violated the key 200 SMA support for cash and fkli. With the violation of the 1268, we shifting our near-term outlook to bearish.
Overall, sentiment remain in the near term was likely to drive extended volatility in the market with the fkli possibly attempting to consolidate after the sharp losses over the past week. The small losses in Dow last night can provide some respite from the carnage. Anyway, we think the current support line would only provide temporary support for the market following the anxiety in global market. Maintain selling on strength. Immediate resistance lies at the 1270 levels, followed by the 1280.
US Market
U.S. stocks and the euro pared deep losses to end mostly flat last night as investors had second thoughts that a festering euro zone banking crisis will spread worldwide and strangle a reviving economy. A late-day rally pulled the benchmark S&P 500 into positive territory minutes before the closing bell and wiped out most of the session's losses for the Dow, which closed above the key barrier of 10,000. The Dow closed down 22.82 points, or 0.23%, at 10,043.75. The Nasdaq Composite Index fell 2.60 points, or 0.12%, at 2,210.95
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