To test critical level

Wall Street falls for the 2nd day in a row last night after the sharp rebound on Tuesday night. Dow lost another 121pts while the Nasdaq lost 26pts. This 'should' be the final leg down for the Dow. This final leg could send the Dow lower towards the 12,900 level again or slightly lower. Only a break (and close) below 12,840 would signal a (rare) Dow Theory Sell signal which last happened in 1999. If the level is not breached, then there is a very good chance that this downtrend is over. And the bull run should start then, which could rally all the way into 2008. So, be prepared and keep a sharp eye on the 12,840.

STI should continue to find support above the 3,434 level, which is the 50% Fibonacci retracement level, followed by 3,322, its 62% Fibo level. Investors should start to buy between those levels.

For the KLCI, the index continued to find support above the 1,380 level. Yesterday's inside day suggest indecision among investors. However, I believe that the uptrend rally is bout to take place, possibly next week. Investors should start buying whenever the index eases towards the 1,370-1,380 level.

Just keep an eye on the Dow. If Dow breaks the critical level, then my count could be wrong. If Dow holds steady, then I believe that the low is in and a rally could take place next. Having said all that, even if the Dow breaks the critical level, I still believe that the BIG Bull would come, probably delayed by a couple to 6 months. :) So, let'e hope it doesn't.

Same quote:- Do not miss this BULL RUN!!! It is going to be BIG!! Very BIG!!! :)