Another down day ahead

Consolidation is expected to continue today in line with the fall on Wall Street. Dow lost another 72pts while S&P500 shed 10pts. For STI, we should be able to see more downside today after yesterday's breakdown from its double inside days. A fall below 3,780-3,800 would likely signal the start of a new ST consolidation. On the other hand, for KLCI, a fall below the 1,365-1,367 level would send the index into a ST pullback towards the 1,334 level. It maybe best to stand aside as the overall market is likely to be weak. Construction stocks which has been rallying for the past week could see some profit taking today. However, there maybe one or 2 penny stocks that would outperform.