Tuesday, 25 September 2007

May have hit a wall


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.

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