Update KLCI & Futures

KLCI closed up at its high again this week despite regional markets falling. However, it still has not breached the neckline of the IHS formation which is at around 927. The biggest concern is that despite rising index, volume is actually falling (see chart). Thats a bad sign. Daily MACD & RSI are still rather flat while the weekly are still negative.

I will throw my hat in the ring and call for a CORRECTION in the CI this coming week. If prices fail to hold above 924 or rise above 927 then it should fall to 913 or even 906. If after the fall it then rises we may see the true unfolding of the 2-shoulder IHS & then a big rise in the index. So I would be quite cautious this week.


FKLI (CI Futures) have been trending up this week but is there a correction coming? The weekly chart shows strong resistance at the 921 level at several points in the chart since 2004. That level has stopped the FKLI at least 5 times will it do so again? Considering that the CI itself may correct down I believe that 921 will again stop the FKLI this week. Also the weekly MACD & RSI are still down but coming to a flat position while the Daily have just turned up with a golden cross in MACD. However the over whelming indication is for a correction. So if you are still bullish on Futures tread with caution.