03 February 2009

Technical Analysis - January 30 2009


S&P500 (826, last week 832 or -0.72% w.o.w )

Except for the Daily Parabolic SAR which turned positive recently, all other indicators egs MACD, MACD Histogram, Guppy MMAs and DMIs (+ve and –ve) are negative. For the weekly readings, the MACD, MACD Histogram and Parabolic SAR are still positive but will eventually turned negative if the selling continues further. The weekly ADX trend and DMIs (+ve and –ve) are bearish while Guppy MMAs is weakening further. Expect index to be at best consolidating. Support is around 780 and resistance at 850.

KLSE CI (884, last week 873 or +1.3% w.ow)

The market still has a 1% gain for the year. The daily indicators MACD, Parabolic SAR, ADX trend and DMI (+ve and –ve) have turned bearish. The weekly charts MACD and Parabolic SAR are still positive but will eventually turned negative if the selling continues further. The index is expected to trade between 835 and 915.

HangSeng (13,278, last week 12,579 or +5.6% w.o.w )

Despite only traded for two days during the week, the index gained more than 5% . Despite this, all the daily indicators like Parabolic SAR, the daily MACD and MACD Histogram and Guppy MMAs are still negative. The weekly charts are still positive, especially the MACD, MACD Histogram and Parabolic SAR but will eventually turned negative if the selling continues further. Support is seen at 12,600 and resistance at 15,000.

Nikkei 225 (7,994, last week 7,745 or +3.2% w.ow)

Similar with S&P500, except for the Daily Parabolic SAR, all the daily indicators like MACD and MACD Histogram, 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 has just turned negative. Support is seen at 7,400 and resistance at 8,400.


* JapanTimes: Japan's longest boom in the post war era died in October 2007. The boom lasted 69 months.

* CNN: Heaviest snow in 18 months partially criples UK.

* Will Australia cuts its interest rate by 150 basis point today similar with its NZ counterpart? Together with a slowing down economy and a negative trade deficit in December, watch AUD goes down further.

* Fitch: Outlook for KL currency rating negative.



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