Gap closed

The STI has closed its gap and has a very good chance that it would continue on its fall to retest the 3,480 support. The KLCI almost closed the gap (it only reached 1,374 yesterday while the gap resistance was at 1,376). With indicators still looking bearish, it is sufficient to say that it would likely ease back to retest the 1,350 support. Adding to the bearish tone is the fall on Wall Street. Stocks that has risen quite a bit in the past couple of days should see profit taking. Investors ought to take profits and stay out of the market for now.