Wall Street was flat last night. Dow closed unchanged while the Nasdaq fell 11pts. Dow and the S&P 500 is trading close to its 50% Fibo retracement. A kick up to the 62% (1,484) for the S&P is not impossible but the upside is about 1.5%. Hence the limited upside compared to the risk of a reversal. It is time to be cautious again as we wait for the c-wave to kick in. Be prepared for another fall soon.
The KLCI and STI is not expected to buck the global trend. Similarly, for the KLCI, I am expecting today to be a generally dull day. Well, I see little upside for the index. A test of 1297 (62% Fibo) is also likely, but I expect more of a sideways trend between 1,272 and 1,288. I would be getting out of the stocks (at today's closing price) that I bought for the portfolio yesterday.
For STI, it was a touch and go for the index. It surpassed its 62% Fibo yesterday but reversed right after to close below it. Expect more of a sideways trend as well for the STI today. Range is likely between 3,340 and 3,410. Taking out both the stocks that I bought for the portfolio yesterday.
No comments:
Post a Comment