US Dow Jones break 9500 till 9519 highest last night, thus Positive sentiments have returned to the US Market. US Housing Market Sales have started to surge 7.2%, its the best among the last 2 years.
Markets will rally for a while due to this positive sentiment as US Dow Jones Breaks new high, the indicators in the chart also signal an positive uptrend for the next few days which is midterm. The Stochastic and MACD and looking good and is on a small uptrend. Parabolic Sar is also starting to form up at the bottom hence forming a Small Rally Signal. I expect the Market on Monday and the follow few days.
KLCI Futures Charts showed some Consolidation previously, with support level around 1148 and resistance at 1170 or the midterm, once broken 2nd resistance would be 1190. This months correction was around 40 points from 1189.50 to 1149.50, meaning it won't drop more than 50 points during a correction.
Only when the market drops more than 100 points would we be considered a bearish market. Our Market is now consider low trading volume with less than RM1 Billion done everyday.
The 5 min chart for last Friday 21st August, show a drop in the morning due to the poor shipping rates of Asia, hence casuing Asian Stock Market to pullback for a while. However, in the afternoon even though China governmetn announced they are Tighthen Bank Loans, regional markets starst to recover and hence consolidation for the whole afternoon between 1157 - 1161. Normally after Consolidation there is a new direction. And with US DJ markets showing more positive sentiments, do expect a small uptrend.
Do take note that normally August and September month is sideway months and consolidation periods. Don't be overjoyed with the midterm positive sentiment. For the past few years September is always a very volatile and crashy month. So do be cautious. And remember its always a good time to buy during a crash when the volume is low.
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