KLCI uptrend in peril
The Dow has now broken the 7,882 support convincingly. There is no doubting the Dow
bears now, it is intent on testing the strength of the ultimate low of 7,449. If it is strong enough, it could also possibly even be creating new lows. The “deep sea explorations” of the bears will introduce perils to global markets and our KLCI.
KLCI : How badly will the KLCI bulls be hit?
While some last-minute buying activity helped to provide some consolation to the KLCI’s bearish s
ession yesterday, the KLCI today will still be put in grave danger by the Dow bulls. The critical support band of the KLCI is pegged at the 890-900 level. Right now we are 8 points away from this level. Our only hope that the KLCI uptrend won’t be ruined today would be the marginally decreasing correlation between the Dow and the KLCI in the lastfew weeks.
As can be seen from the correlation chart below, the correlation between the Dow and the KLCI is 
still decreasing. Let’s hope that this downward correlation trend will help preserve the KLCI’s critical 890 support today.
still decreasing. Let’s hope that this downward correlation trend will help preserve the KLCI’s critical 890 support today.HAPPY INVESTING & GOODLUCK2ALL
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