The S&P500 could be doing a 3-3-5 flat Corrective Wave 4. I think the selling would likely end soon. Yesterday's fall could be close to the end and the only risk to this count is that volume is not sufficient. In other words, there is no selling climax yesterday. Nevertheless, I am stick to my view that the US market could bottom out soon. Give it a couple or more days. Dow could find support around 12,600 while S&P holding above its LT uptrend support. A break below would likely signal the start of a weaker trend in the short term.
Could STI downfall coming to an end? There is a strong possibility that the low is around the corner. Whenever the RSI fell below its 30 pts mark or in the oversold region, the STI usually found a ST bottom. Could this round be the same? I believe so coz it is also holding above its 62% Fibo levels of 3,322. Maintain buy on weakness.
For KLCI, there is no change in view. It should track regional markets accordingly. Strong support is at 1,340 while resistance is at RM1,365.
Could STI downfall coming to an end? There is a strong possibility that the low is around the corner. Whenever the RSI fell below its 30 pts mark or in the oversold region, the STI usually found a ST bottom. Could this round be the same? I believe so coz it is also holding above its 62% Fibo levels of 3,322. Maintain buy on weakness.
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