Dow fell 76pts after surging 319pts the previous day. Hence a minor correction is not unexpected. Nevertheless, I think there will be a small pullback from here to complete this downtrend, may be another fall to 12,900-13,000 region (or thereabouts). Investors should get ready for the upcoming Bull run. I do not know what is the catalyst for this upcoming bull run, but I believe it is still going to happen. We are in a Major Bull Cycle which is 'expected' to end in 2008/2009. So, there is still room on the upside.
STI should still find support at 3,434-3,500 levels. Investors should buy on dips. Similarly for the KLCI, the 1,370-1,380 would likely be a good level to get in. Do note that Synergy Drive is expected to be listed sometime in Nov (can't quite remember when - could be next week). It will be the largest capitalised stock on Bursa Malaysia. I believe this would likely give the Malaysian market the kick it needs to move on higher above the 1,400 level.
Lower to buy!!
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