Technical Analysis - October 20 2008

S&P500 (941, last week 899 or +4.67% w.o.w )

It looks like the index is staging a technical rebound. However, the rebound does not seem to be strong and lasting based on the readings on the daily indicators. The index may find support at 850 and 768(6 year’s low) while resistance is at 960 and 1,000.

KLSE CI (905, last week 934 or -3.1% w.ow)

The daily and weekly technical indicators remained weak. There is a likelihood that a technical rebound will come in this week as all the daily indicators remained in an oversold position. The index is expected to trade between 850 and 1,000.

HangSeng (14,554, last week 14,797 or -1.64% w.o.w )

The daily indicators are all in a negative position. A technical rebound is imminent and is likely to be lead by the US markets. The weekly charts are still in a negative territory. Support is seen at 14,000 and resistances are at 15,500 and 16,500.

Nikkei 225 (8,694, last week 8,276 or +5.05% w.ow)

The technical rebound seems to be in progress. However the daily/weekly indicators are still very weak. The support is seen at 7,500(5 year‘s low) and 9,500 and resistance is at 9,500.

* Bloomberg: South Korea will get a USD130B financial rescue package from its government to fight global recession.

* Bloomberg: ING will get a shot in the arm of USD13.4B from the Netherlands government.

* Bloomberg: India cuts its repurchase rate3 unexpectedly for the first time since 2004 from 9% to 8%.