Technical Analysis - February 23 2009

S&P500 (770, last week 827 or -6.9% w.o.w)
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This will be the second week of hefty losses. The Daily MACD and MACD Histogram had a negative crossover 5 sessions ago and has thus joined the Daily Parabolic SAR, Guppy MMAs and DMIs (+ve and –ve) turning bearish. For the weekly readings, the MACD and MACD Histogram are still positive but the Parabolic SAR has just turned negative. The weekly ADX trend, DMIs (+ve and –ve) and Guppy MMAs are still weak. Support is around 700 and resistance at 820.
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KLSE CI (890, last week 910 or -2.2% w.ow)

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Despite the daily indicators MACD, Parabolic SAR, ADX trend and DMI (+ve and –ve) have all turned positive during last week, indicators such as MACD and DMI (+ve and –ve) are now slowly flashing negative although no crossover downwards yet.. The weekly charts MACD and Parabolic SAR continues to be positive but the weekly ADX trend, DMIs (+ve and –ve) and Guppy MMAs are still otherwise. The index is expected to trade between 860 and 910.

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HangSeng (12,699, last week 13,555 or -6.3% w.o.w )

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With a hugh drop during the week, the daily indicators like Parabolic SAR, MACD and MACD Histogram dips under water again. As of weeks ago, the DMI (+ve and -ve) and Guppy MMAs continue to be negative. 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 12,000 and resistance at 13,200.

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Nikkei 225 (7,416, last week 7,779 or -4.7% w.ow)

All the daily indicators like the Parabolic SAR, MACD, MACD Histogram, Guppy MMAs and DMIs (+ve and –ve) are bearish now. The weekly charts are still positive, especially the MACD, MACD Histogram. However, the Parabolic SAR, Guppy MMAs, ADX trend and DMI (+ve and –ve) are still weak. Support is seen at 7,000 and resistance at 8,000.

* Bloomberg: South Korea is prepared to support won, banks as market tumbles.

* Bloomberg: Asia agrees on USD120B pool of currency reserves as crisis worsens.

* BT: Macquarie:- Investors positive on Malaysia stocks. It picks Genting, AMMB, KNM, TMI and Tenaga.

* InvestorsBizDaily: Clinton urges China to keep buying US Treasurys.