Euphoria but what next for CI & Futures?

As expected Monday's Euphoric response to the budget came true. BUT risers & losers were about equal & volumes were very very low - not very convincing for whats supposed to be a 6 month high for the Index is it? So whats next?

1) KLCI - is getting close to its 970 strong resistance line. Volumes are low & there have been equal numbers of losers & gainers the last week including Monday. I am not at all convinced that the market can make new highs this week. Why?
a) The rise has been very steep without much of a correction to correct the overbought conditions. The steeper the rise, the harder the fall.
b) If the market is really bullish there should be much higher volumes but they have actually been falling while the index has been making new highs. This divergence is very disturbing & so not at all bullish. Even Euphoric Monday had very low volumes.
c) Even though the index is rising steeply there are as many losers as risers among stocks, not exactly a bullish market is it?
d) Technically the appearance of a wedge indicates a weakening market. The same thing happened in May & the market true to TA fell. Why should this time be any different? A breakdown from a wedge will be fast & furious.
e) RSI & MACD have been flat even when the index has been rising, another divergence that is not very comforting.
f) 970 has been a support/resistance line on many occassions before & in May stopped out the rise. Because the market did not correct adequately along the way it does not have the strength to rise strongly to break 970. From 18 July to 4 Sept (1.5 months) it rose from 900 to 968 with only one real correction (for 2 days) on 15 & 16 Aug. This is inadequate to correct the overbough position. So the market has no real strength.
g) Finally FKLI (CI Futures) did not rise on Monday & is at a discount to the cash market. Another strong indicator that the CI may correct.

When we take all these indicators into consideration the only conclusion is that the market is on its last legs. It will reverse very very soon, on that you can be sure.


2) CI Futures - is at a 7 pts discount to the CI. On Monday it did not follow the bullish CI trend & instead rose only 3 points compared to the cash market's 8. It is at the 960 resistance line & may soon fall. Vol also has been very low & falling despite the index rising. When we see such divergences in TA it is an indication of weakness & that the rise does not have strong market support. Maybe local institutions were holding it up for the budget. In any case Futures may also reverse soon, maybe even today. Initial support is at 940.