Technical Analysis - September 8 2008

S&P500 (1,242, last week 1,283 or -3.2% w.o.w)

The daily MACD and DMI (+ and -) succumbed to the pressure last week and are currently in a negative hook down again. The weekly charts eg MACD has also deteriorated and is also in a negative territory. The index is currently weak and may continued to worsen this week unless some massive propping up is done. The index may find support at 1,200 while resistance is at 1,280.

KLSE CI (1,071, last week 1,101 or -2.7% w.ow)

Looks like the technical rebound fizzled out during last week. Despite the heavy selling last week, the daily MACD is still in the positive cross over but is showing sign of weakness.The weekly charts are still weak. The index is expected to trade between 1,025 and 1,100.

HangSeng (19,933 , last week 21,262 or -6.3% w.o.w ).

Looks like the technical rebound fizzled out during last week. The daily/weekly indicators have all turned into a negative cross over again. The daily 200 days ema is at 19,800. At this moment, it is unlikely this level will be maintained and as such the next support levels are at 19,500 and 18,500 while resistance is at 22,500.

Nikkei 225 (12,212, last week 13,073 or -6.6% w.ow)

Just like the KLSE CI and HangSeng, the technical rebound a forthnight ago was not sustainable during last week. The daily/weekly indicators have all turned into a negative cross over again. The support is seen at 11,700 and resistance is at 12,700.

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* Badawi should have slapped racist Ahmad instead of shaking hands with him? This should get Badawi some brownie points from us.

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* AP: South Korea facing "September crisis"? It may not be happened as predicted but the economic data does not really look that great....currency falls to a 4 year low, stock market tumbles 26%, foreign investors fleeing, USD7B South Korean bonds maturing latter this month, jobless rate at 9%, high inflation, rising external debt and expected current account deficit.

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* BT: Malaysian derivatives market failed to start this morning due to computer glitch. Will it be the hard disk failure again this time? Who will go be sacrificed now?

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* DailyTimes: Top Cat on Malaysia's expected inflation rates in the coming months. "The worse is behind us. It should be lower than 8.5% in August and September" (Note Malaysia's inflation for June was 7.7% and August was 8.5%).

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* Fannie/Freddie bailed out by US Treasury with a potential amount of USD200b. Asian markets seems to delighted by such conservatorship arrangement by the US Government. Some analysts were happy the plan was thought out wilth taxpayers in mind.