Technical Analysis - November 24 208

S&P500 (800, last week 873 or -8.37% w.o.w )

Finally, the daily indicators have all succumbed to the selling pressure during last week. The daily MACD and Histogram have all shown a negative signal for the last 4 trading sessions while the daily Parabolic SAR is showing bearishness. For the weekly readings, the indicators continued to show weakness. Sell again on the rebound. Support is around 750 and resistance at 850.

KLSE CI (867, last week 882 or -1.7% w.ow)

The daily MACD remains in the positive but continues to weaken. However the Parabolic SAR which was positive the week before has turned negative for the last 2 trading sessions suggesting a downtrend is on the way. The daily ADX and DMIs are still giving a sell signal. The weekly charts are still in a negative territory. If the S&P500 index continues to give a SELL signal, the index will without doubt follow suit. The index is expected to trade between 830 and 950.

HangSeng (12,659, last week 13,543 or -6.5% w.o.w )

The daily indicators eg MACD are at a cross road now. If the index does not go up for the next 2 trading sessions, it will without doubt generate a SELL signal. As such it is crucial that the index perform well in the next few trading sessions. The weekly charts are still in a negative territory. If the S&P500 index continues to give a SELL signal, the index will without doubt follow suit. Support is seen at 12,000 and resistance at 14,000.

Nikkei 225 (7,911, last week 8,462 or -6.5% w.ow)

Just like the HangSeng, the daily indicators eg MACD are at a cross road now. If the index does not go up for the next 2 trading sessions, it will without doubt generate a SELL signal. As such it is crucial that the index perform well in the next few trading sessions. The weekly charts are still in a negative territory. If the S&P500 index continues to give a SELL signal, the index will without doubt follow suit. The index is expected to trade between 7,000 and 8,800.

* "D" is a dirty word in the finance world? Deflation, Deficit, Debt, Depression, Down, Dive, Devalue, Deleverage.....

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* AFP: IMF says global crisis will get worse and economic situation won't improve until 2010. So far, it has helped in financial distress countries like Iceland, Hungary, Ukraine, Serbia and Pakistan. Next in line would be Lativa. It has spent 1/5 of its USD250b fund in these countries in the last 2 weeks.

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* It will not stop till there is blood in the street? Now seen in Iceland after the economy fall apart with a banking collapse in October and its currency-Krona- has lost half of its value since January. I believe there will be more social unrest soon in many other less well "prepared" countries.

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* Will BNM cuts the OPR rate of 3.5% held since 30 months ago in their last rates meeting for this year? Half of the economists surveyed by TheEdge says so while another half says it will only cut in the 1Q2009.

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* BT: Goldman Sachs' s forecast on Genting International -maintains Neutral- TP 0.45 SG cents from 0.56 SG cents..

* YahooFinance: CitiGroup which will shed more than 50,000 jobs will get a USD306B loan guarantee and a USD20b of government cash.