ZLBT's Tuesday Morning Reviews >>> Kick Ass Markets

WHEN LEAST EXPECTED ..........
Just when we though that the market correction is nothing major and less thing for us to worry about, market will strike beyond our expectation. This is what happened yesterday when the FBM KLCI took a dive after most of us though that the correction is over past week. The FBM KLCI dip about 14.67 point or 0.93% to closed low at 1,562.58 yesterday, the highest intraday drop this month. 

Most Asian markets ended lower on Monday to begin the week on a subdued note as concerns over U.S. and European sovereign debt issues kept investors wary. Hong Kong's Hang Seng Index HK:HSI -0.32%   ended the day 0.3% lower at 21,804.75, China’s Shanghai Composite IndexCN:000001 -0.12%  slipped 0.1% to 2,816.69 and Australia’s S&P/ASX 200 index AU:XJO -0.03%  ended little changed at 4,472.0. South Korea’s Kospi KR:0100 -0.69%  fell 0.7% to 2,130.48 and Taiwan’s main index gave up 0.4% to 8,538.57. Japanese markets were closed for a holiday.

Following the same fate of FBM KLCI, index futures for July contract slid 19 points to settle at the low of 1,561 level, the lowest since 23rd June. The warning on these major corrections were published on the post two weeks when the market is forming a "rising wedge" pattern that eventually appear less relevant when the market kept going higher. Even though it is less relevant, the support trend line that have plotted on stock index daily chart might be the most important parameter to warn us about the impending weakness yesterday. 

The Bears were definitely in control on yesterday, brutally defying any Bulls attempt to support the market. For today, traders could opt to go Short when the attempt to recover approaching the R1 level while support level is located around 1,550.

Daily Pivot Point

R2= 1582

R1= 1571

S1= 1555

S2= 1550

HAPPY TRADING & GOODLUCK2ALL