The S&P500 gave up all its gains this year after last night's fall. Concerns of losses from mortgage defaults have spread throughout the economy sent stocks on Wall St plunging. American Express fell to its 14 month low after Morgan Stanley recommended investors to sell the stock. The Dow is now below its critical level of 12,840, which could mean the delay in the arrival of the BULL. The Dow Theory Sell signal seems to be in place. The last time it occured in 1999, the Dow fell about 30% from its high. It means that it has a long way to go - down. Nevertheless, if Dow recovers to regain the 12840 this week, then we might avoid this bearish scenario. Keeping the fingers crossed.
STI and KLCI would likely see further selling today on the back of Wall St's plunge. KLCI to find support at 1,340 (100day SMA). If the index stays above the this support, then the Bull upcoming run is still intact. For STI, the 3,322 support needs to hold in order for the BULL to continue in the next couple of weeks. The next support is at 3,180 followed by 3,000. With Dow in such a precarious position, it may be better to cut some losses first before getting in again sometime in the near future. Otherwise, investors could hold on until the end of the week to see if both the supports hold.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment