Wall Street retreated slightly last night as financials led the markets lower. Dow ended 61pts lower lower while S&P500 lost 8pts. Why would I say that the market may have hit a wall? Using the Gartley Pattern of correction, the Dow is poised for a correction soon. Is it really coming? I think so.
What about the rest of the markets especially the KLCI and STI? KLCI is starting to cover the gap at 1,316-1,320. There is still a minor chance that it can cover the 1,324-1,332 gap. But investors ought to sell into strength rather than buy (even though the sentiment feels bullish). STI is also the same. 3,688 is just a stone throw away. It may surpass it slightly to 3,700 but do not take it a buy signal yet. Right now, it may be best to stand aside and watch the market.
What about the rest of the markets especially the KLCI and STI? KLCI is starting to cover the gap at 1,316-1,320. There is still a minor chance that it can cover the 1,324-1,332 gap. But investors ought to sell into strength rather than buy (even though the sentiment feels bullish). STI is also the same. 3,688 is just a stone throw away. It may surpass it slightly to 3,700 but do not take it a buy signal yet. Right now, it may be best to stand aside and watch the market.
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