Technical Analysis - February 10 2009

S&P500 (869, last week 826 or +5.2% w.o.w)

What a turnaround! Now the Daily MACD and MACD Histogram have joined the Daily Parabolic SAR to become positive as well while Guppy MMAs and DMIs (+ve and –ve) are slightly negative. At this juncture, the indicators may continue to turn bullish if further bad news in the market are being discounted. For the weekly readings, the MACD, MACD Histogram and Parabolic SAR are still positive.The weekly ADX trend, DMIs (+ve and –ve) and Guppy MMAs are still bearish. Support is around 820 and resistance at 900.

KLSE CI (897, last week 884 or +1.5% w.ow)

The daily indicators MACD, Parabolic SAR, ADX trend and DMI (+ve and –ve) although have turned negative recently is seen making a comeback. Unlike the S&P500, none of the indicators have register positive readings yet but will soon be if the markets are to move up discounting further bad news. The weekly charts MACD and Parabolic SAR are still positive but the weekly ADX trend, DMIs (+ve and –ve) and Guppy MMAs are still bearish. The index is expected to trade between 860 and 915.

HangSeng (13,655, last week 13,278 or +2.8% w.o.w )

After gaining almost 8% in two weeks, the daily indicators like Parabolic SAR, MACD and MACD Histogram have turned positive again. The DMI (+ve and -ve)and Guppy MMAs are still negative but has improved. The weekly charts are still positive, especially the MACD, MACD Histogram and Parabolic SAR but the weekly ADX trend, DMIs (+ve and –ve) and Guppy MMAs are still bearish . Support is seen at 13,000 and resistance at 15,000.

Nikkei 225 (8,077, last week 7,994 or +1.0% w.ow)

The daily indicators like MACD and MACD Histogram has joined the Daily Parabolic SAR to become positive during the week However, the DMIs (+ve and –ve) and Guppy MMAs are still negative. The weekly charts are still positive, especially the MACD, MACD Histogram. However, the Parabolic SAR which turned negative are still as such but will turn bullish soon if the market continues to turn upward. Support is seen at 7,700 and resistance at 8,600.

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* Bloomberg: China's inflation slows to 1% in January 2009 from a year earlier, weakest pace in 2 years as economy cools. Many analysts are predicting deflation looming

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* BT(Singapore): Delhi expects growth to slow to 7.1%.

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* YahooFinance: Obama to Congress: Pass stimulus, don't play games.