Technical Analysis - January 12 2009

S&P500 (890, last week 932 or -4.5% w.o.w )

There are some mixed signals in the short term coming from the index. For example, even though the Daily MACD is still in the positive, the Daily Parabolic SAR and DMIs (+ve and –ve) are showing weakness already. For the weekly readings, the indicators are improving slowly and the MACD had a positive crossover and the weekly Parabolic SAR has also just turned positive. The weekly ADX trend and DMIs (+ve and –ve) are not bullish yet. Support is around 820 and resistance at 950.

KLSE CI (919, last week 894 or +2.8% w.ow)

Unlike the other markets, the daily indicators continued to improve further during the week. The index is still able to sit above the daily 50-day ema. The daily indicators of Parabolic SAR, ADX trend and DMI (+ve and –ve) are still positive. The weekly charts have improved and the MACD and Parabolic SAR are still positive. The uptrend will be enforced further if the weekly ADX trend and DMIs (+ve and –ve) were to turn bullish too, so far still moving towards it only. The index is expected to trade between 850 and 970.

HangSeng (14,377, last week 15,043 or -4.43% w.o.w )

Another volatile situation during the week. Market sentiment for the current term seems to be mixed. While the week before there was a positive turnaround for the index, this week witnessed a negative turn. The index is now below the daily 50-day ema of 14,850 again. Except for the Parabolic SAR, the daily MACD and MACD Histogram are slightly negative. The weekly charts are doing well, especially the MACD and MACD Histogram which are bullish. The weekly Parabolic SAR is also positive. It will be bullish for the market if it can break through the tough weekly 20-day ema of 16,000. Support is seen at 14,000 and resistance at 16,000.

Nikkei 225 (8,837, last week 8,860 or -0.26% w.ow)

The daily indicators also giving some mixed signal during the week as the index falls below the daily 50-day ema of around 8,900 level after a brief success. The daily MACD and DMI indicators which have just turned positive earlier are getting weaker while the Parabolic SAR has just turned bearish. The weekly charts are improving. The Parabolic SAR is positive too. It will be bullish for the market if it can break through the tough weekly 20-day ema of 9,500. The index is expected to trade between 8,500 and 9,500.

* Japan market closed today due to the Coming of Age holiday and will be reopen on Tuesday.

* Bloomberg: Satyam may restate earnings, be broken up following Chairman Raju's arrest.

* The WSJ: Disney is moving ahead on a plan for a USD3.59B theme park in Shanghai- one of the largest foreign investments in China.

* China says it can be the first to "recover" from the current financial crisis.