Technical Analysis - November 3 2008

S&P500 (969, last week 877 or +10.5% w.o.w )

The long awaited technical rebound came in last week. The daily indicators like MACD, MACD Histogram and Parabolic SAR have all turned positive during the week. However the daily ADX and the DMIs are not positive yet. For the weekly readings, the indicators have not turned bullish. The index will have an uphill task to recover and it will be good if it could form a short term bottom around 850 to 950 levels. It may have some selling pressure this week as its daily Stochastic Oscillators are slightly overbought. Support is around 960 and resistance at 1,050.

KLSE CI (864, last week 859 or +0.58% w.ow)

The daily and weekly technical indicators remained weak. Although the daily Parabolic SAR has turned slightly positive, the index performance is generally without much strength last week as compared to other markets. However, if the US and regional markets continued to perform better, the index will prop up along the way too. The immediate task for the index is to determine a short term bottom and ideally it should be at 800-850 levels. The index is expected to trade between 830 and 920.

HangSeng (13,969, last week 12,618 or +10.7% w.o.w )

The long awaited technical rebound came in last week. The daily readings for the index have turned slightly bullish. The daily MACD has a first crossover and a positive MACD Histogram on Friday. The daily ADX and the DMIs have not turned positive yet. The weekly charts are still in a negative territory. Like the other indices, the HangSeng index has plenty of work to do and it is best if it will be able to form short term bottoms around 11,000 to 13,000. It may have some selling pressure this week as its daily Stochastic Oscillators are slightly overbought. Support is seen at 12,500 and resistance at 15,500.

Nikkei 225 (8,577, last week 7,649 or +12.1% w.ow)

The long awaited technical rebound checked in last week. For the last 2 days of the week, daily indicators like MACD, MACD Histogram and Parabolic SAR registers a slight bullish signal. However, the weekly indicators continue to show weakness. Like other indices, the Nikkei needs to find its short term bottom and preferably it should be at levels 7,500 and 8,300.The daily index has plenty of work cut out and it is best to regain some strong support at levels mentioned above. The index is expected to trade between 8,200 and 9,500. It may have some selling pressure this week as its daily Stochastic Oscillators are slightly overbought.

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* Bloomberg: South Korea unveils a USD10.8b stimulus package for 2009 to prevent the economy from registering the first recession in a decade.

* Bloomberg: India cuts its repurchase rate to 7.5% from 8% and reduced the amount of deposits required to set aside as reserves to 5.5% from 6.5%, and amount required to keep in government bonds to 24% from 25%

* Despite the reduction of another 15 sen in fuel price last week, no traders reduced food prices....how now?