Wall St fell sharply after banks fell the most in 5 years. The subprime worries has hit again. The Dow lost 362pts while the S&P500 gave up a hefty 40pts. The fall yesterday erased about $369 billion of market value from the benchmark for the American equities. We should continue to see more downside from here. Having said that, I do not expect a straight line drop but I think it would likely be very volatile. It could swing up another 150pts in between the fall again. (Well, I hope you guys get what I mean). I would likely be a yo-yo market with the larger picture trend is down. 12,900-13,000 could be the target for this downtrend.
KLCI yesterday closed near the low, which for the immediate time frame is bearish. So did the STI. Both could hv actually formed a rounded top but it needs confirmation. KLCI should ease to retest the 1,392 after failing to breach the 1,425 resistance. STI could head back to retest the strong support at 3,660-3,688. The upside resistance for STI is at 3,850.
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