As I mentioned before, the US markets has not bottom and the final wave of selling was ready to kick in. It appears to be happening now. Where is the bottom? I am looking at12,900 levels for the Dow. However, should the index fall below the Aug lows, then we have a Dow Theory Sell signal. So be careful.. For now, stand aside. Wait for clearer signs before jumping in. The bulls should have sharpened their blades by now and just waiting for the right moment.
ST- more downside expected. Could be sharp but is expected to be short. Target 12,900 for now.
LT- Big bull is coming after this consolidation - no matter how sharp it is..
STI could find support at the gap of 3,460-3,520. LT uptrend is still intact.
KLCI to find support at 1,380 again. Looks the strongest among its regional peers.
Nevertheless, buyers in both markets ought to wait. Only investors with deep pockets can start to nibble and average lower should the market continue to fall. Be prepared for the next bull run!! It is going to be a good one but it would likely be the last. The next bull could take place 14yrs down.
"You've been warned!!" :)
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