Technical Analysis - December 5 2008

S&P500 (876, last week 896 or -2.23% w.o.w )

During the week, the index gave up a small percentage of its gain gathered a week earlier. The daily indicators continued to register uptrend. It is noteworthy to mention the daily index is sitting above the 20-day ema; a task it tries to do since mid November. The ability of the index to stay positive will help the daily indicators turning more bullish and give a more concrete direction for the index which has been rather hard to predict of late. For the weekly readings, the indicators are still showing weaknesses but the MACD is showing signs of bottoming. Support is around 850 and resistance at 940.

KLSE CI (838, last week 866 or -3.2% w.ow)

The daily MACD still remains in the positive but is almost touching the crucial level of negative cross over again due to its listless trading during the week. The MACD Histogram is showing weakness ahead unless the index able to come to life again. The Parabolic SAR continues to issue a negative signal. The weekly charts are still in a negative territory. The index is expected to trade between 800 and 900.

HangSeng (13,846, last week 13,888 or -0.3% w.o.w )

Similar to the S&P500, the daily indicators are doing well and strong. The Parabolic SAR has since turned positive too. It is noteworthy to mention the daily index is sitting above the 20-day ema; a position it has maintained since late November. The next task will be the 50-day ema, which is at 14,883. It would be interesting to see if the daily ADX and DMI indicators can show positive uptrend soon; a position it last register in late July. The weekly charts are still in a negative territory but there seems to be some bottoming process as evident from the MACD indicators. Support is seen at 13,300 and resistance at 15,500.

Nikkei 225 (7,918, last week 8,512 or -6.97% w.ow)

The similarity with HangSeng ended last week. The index seems to be getting weaker and did not recover after a bout of profit takings during the week. The daily indicators eg MACD and MACD Histogram which have decided to go up instead down a week earlier are now in flattish position. The Parabolic SAR continues to issue a negative signal. It is most important the index does come back to life positively during this week if to save the daily indicators from turning bad this week. The weekly charts are still in a negative territory. The index is expected to trade between 7,500 and 8,500.

* Asian and European markets are flying on hope of global stimulus plans to boost world growth. Is the worse over already?