KLCI & Futures

1) KLCI - Finally the correction came. The CI was already exhibiting weakness for a few days & the divergence bet declining volume & rising prices as well as a flat daily MACD & RSI were all indicators of weakness. The Harami at a peak on Tuesday was a strong sign that a reversal was coming & even a 130 points rise in the Dow could prevent it. Today's long black candle portends further falls on Thurs/Fri. Support will probably be at 924 the IHS neckline. I don't think we will see a major downturn, it is most likely a correction within a bullis uptrend.


2) CI Futures (FKLI) - No more discount to the CI. Both the FKLI & CI are now the same at 938. We have 2 black candles at a peak so I expect the FKLI also to correct down. There is support at 933 & 921, but I think it will fall at least to 921. MACD & RSI are flat & Vol is moderate, so there are really no bullish daily signals altho the weekly MACD & RSI are bullish. So this will most likely be a moderate correction, not a big fall.