Technical Analysis - May 26 2008

S&P500 Chart (1,376, last week 1,425 or -3.4% w.o.w)

The daily charts has weakened again during the week although there was some improvement last week. For example, daily MACD is showing a negative cross over 3 days ago. For weekly charts, MACD is slows down on positive cross over and it is still at -10. The MACD Hist is positive. The DMI (+ & -) has weakened drastically and the ADX seems to deteriorated a little (ie from 22 a week ago to 21). The daily charts needs to do better from now otherwise the Index may quickly fall into down trend again. The index needs to defend 1,360 to have a chance to maintain its uptrend. The index is expected to trade between 1,330 and 1,400.

KLSE CI (1,275, last week 1,301 or - 2% w.ow)

The daily charts has weakened during the week. The daily MACD did not managed to stay above water this week and has a negative cross over 2 days ago. The daily DMI (+ & -) has met each other and their is a strong possibility they will have a negative hook down soon while the ADX has worsened(now 15 from 19 a weak ago). As a result, weekly indicators are still showing downward pressure. The index did not managed to stay above the 1,297 and the revised level of 1,286 and as such fallen out of the uptrend channel created since March this year. The index needs to defend 1,250 to limit the down slide.The index is expected to trade between 1,230 and 1,285.

HangSeng (24,714, last week 25,610 or - 3.5% w.o.w )

The daily charts are still weakening as evident from the MACD's negative cross over 10 days ago.. The weekly DMI (+ & -) has a slight negative hook down and the ADX is at 18.The MACD has crossed over positively but slower at -54 from -46 a week ago and MACD Hist is also positive. The Daily Indicators needs to improve this week for uptrend to continue. Immediate support is at 24,000 while resistance is at 25,500.

Nikkei 225 (14,012, last week 14,236 or -1.5% w.ow)

The daily charts deteiorated during the week and the daily MACD as a negative cross over 2 days ago. For weekly charts, MACD has positive crossover and improved to -351 from -400 a week ago and the MACD Hist is positive. The DMI (+ & -) are improving but no cross over yet. The ADX has weakened at 28(last week 30). The index was unable to maintain 14,200 but is expected to trade on the uptrend between 13,800 to 14,600.

* Vromm....... Lewis Hamilton(McLaren -Mercedes) won the F1 Monaco Grand Prix yesterday. This win is his 2nd win of the season, besides the Australian GP. How green are F1 cars these days? Not really green yet, maybe in years to come. In its bid to lower fuel consumption in the race cars, Federation Internationale de I'Automobile in Paris, an organisation that governs much of the world's auto racing proposed 1 1/2 years ago a "10 year total freeze" on engine development to have F1 leading the way to a greener future. It encourages rapid innovation in hybrid and alternative fuel systems eg kinetic energy recovery systems. F1 is behind the curve with regard to green technology. The Indy Racing League already uses 100% ethanol while NASCAR is following soon.