Technical Analysis - August 11 2008

S&P500 (1,296, last week 1,260 or +2.9% w.o.w)

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The daily charts; especially the MACD/daily DMI(+ and -) continue to improve during last week. The daily DMI(+ and -) have just turned bullish with an early positive crossover. The DMI+ is now above the ADX indicating positive uptrend although it may be a bit early to confirm. It has managed to stay above the major resistance line of 1,280 and for this week it must stay above 1,295 to maintain in the 2nd level uptrend channel line mentioned last week. The weekly charts although improved are still a long way off from a positive uptrend. The index is likely to trade between 1,260 and 1,330.

KLSE CI (1,120, last week 1,159 or -3.4% w.ow)

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The daily MACD although still in a positive crossover has weakened substantially after a week of selling and the DMI (+ and -) were not able to sustain the early positive crossover and have now moved away from each other indicating weaknesses. The weekly charts have also worsened. The index needs to work hard this week to avoid falling into bearish mode again. The index is expected to trade between 1,100 and 1,190. Strong support is seen at 1,120 - the 200-day ema.

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HangSeng (21,885, last week 22,863 or -4.2% w.o.w )

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After a week of volatility and persistent selling, the daily MACD chart has shown some early bearish signal last week as it has just turned into a negative crossover and a negative MACD Hist. The DMI(+ and -) and ADX lines have also weakened substantially during last week. The weekly charts have also worsened. The index needs to work hard this week to avoid falling into bearish mode again. Immediate support is at 21,600 while resistance at 23,000.

Nikkei 225 (13,168, last week 13,095 or +0.6% w.ow)

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The daily MACD chart is still positive while DMI(+ and -) continued to break away from each other during last week. The weekly MACD although is now at the crucial stage of hooking down still managed to stay afloat for now. The weekly MACD has been on a positive crossover since April this year. The index is expected to trade between 13,000 to 14,000 The index needs to work hard and maintain above 13,300 to show some uptrend possibilities.

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* Shanghai Stock Exchange CI drop another 5% today.....no olympics rally but olympics lari..

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* Goldman Sachs believes China's economy will be slowed instead of stimulated the next 2 months by the Beijing Olympics Games and Paralympics because the restriction on construction, factories, cars and mining to cut pollution will be a "short term" drag on economic output.

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* BT Singapore: Singapore's economy grew at the slowest pace in five years. The GDP expanded by 2.1% in the 2Q, after growing 6.9% in the 1Q.

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* The Edge: Tourism Malaysia expects to attract 21.5m tourists this year, 1 million short of initial target resulting a potential RM2b losses in foreign receipts.