Looking for a rebound

Regional market rebounded slightly yesterday. KLCI also rebounded from its strong support 1,435. However, with Dow falling another 300-plus pts, we could see a lower opening on the
KLCI. 1,435 - i think will be tested again today. A break below suggest that more selling could take place. But I believe that the level can hold because the US markets are very oversold and is due for a rebound - either tonight or Monday - which could last at a least a week. Longer term, the trend is down for the US - with Dow looking at 11,380-11,600.

STI - rebounded off 3,000 yesterday. Similarly, STI could start the day lower due to the US markets. But I believe that it could rebound later in the day or Monday. A rebound is also likely for STI as its indicators are oversold. Nevertheless, it is not a buying opportunity but a selling one.

Sell on strength is the strategy to employ on all markets.