The US markets continues to rally last night. Dow added 133 to 13,424 while S&P500 added 12pts to 1,483. This was on the back of Countrywide Financial Corp. secured new credit lines and investors speculated that financing for businesses and takeovers is becoming more available. If so, then this wave-b up could possibly be an extended one. However, for Dow, this wave-b should not rally past 13,700. If it does, then my preferred count is incorrect. The alternative count is that the downtrend corrective Wave 4 is over and it could be on its way to a new uptrend Wave 5 is already underway. Until then, I still think that wave 4 correction is far from over.
KLCI has been lacklustre for the past couple of days. I expect it to remain so as there is a lack of catalyst to give it a kick in the @$$. However, for the STI, bullish sentiments are slowly coming back especially in the property counters. The index still needs to beat the 3,517 and 3,545 level before it can get out of this bearish woods. KLCI needs to beat 1,300 and 1,332 for it to turn bullish again. Until then, sell out and stay out!!
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