The FBM KLCI did not fall further yesterday even though the US market fell more than 1% on Monday. The key index only dipped into the negative territory for a brief moment after the opening but spent the rest of the session at above the flat-line. Anyhow, it was a consolidation day for the market while investors were waiting for further hints from the US market.
Overnight, the DJIA and SPX rebounded by more than 1% on the back of stronger Euro against the greenback. Nevertheless, the rebound was considered insignificant compared to the losses experienced by the US market over the last four weeks or so.
Our view remains the same that the near-term market outlook will remain bearish as long as it does not return back above the 1,307/1,308 pt-level, which was the peak created in February 2010.
Meanwhile, immediate resistance still lies at the 1,290-1,304 pt-area, followed by the 1,307/1,308 ptlevel. To the downside, we are now looking at the 1,276-1,285 pt-gap area as the immediate support. Monday’s gap area ranging from the 1,269 pt-level to the 1,276 pt-level would be the next support.
Overnight, the DJIA and SPX rebounded by more than 1% on the back of stronger Euro against the greenback. Nevertheless, the rebound was considered insignificant compared to the losses experienced by the US market over the last four weeks or so.
Our view remains the same that the near-term market outlook will remain bearish as long as it does not return back above the 1,307/1,308 pt-level, which was the peak created in February 2010.
Meanwhile, immediate resistance still lies at the 1,290-1,304 pt-area, followed by the 1,307/1,308 ptlevel. To the downside, we are now looking at the 1,276-1,285 pt-gap area as the immediate support. Monday’s gap area ranging from the 1,269 pt-level to the 1,276 pt-level would be the next support.
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