Chart 1: FBMKLCI's daily chart as at April 2, 2012 (Source: Tradesignum)
From the monthly chart, we can draw a line connecting the peaks for the past 18 years. That line could act as a resistance at 1630.
Chart 2: FBMKLCI's monthly chart as at April 2, 2012 (Source: Tradesignum)
If we tabulated the main indices of our exchange (FBMKLCI, FBM70, FBMSCAP, FBMACE & FBMFLG), we can see widespread weakness in the market with only strength noted among the blue chips and selected second liners.
Table: Main indices on our exchange as at April 2, 2012 (Note: Figures extracted from Quickcharts)
Based on the above, I would advise caution in the market. You may want to check out this interesting article from Clusterstocks about the confusing rally in equity market since September 2011 (here). I love this quote from Nomura's Ian Scott:
Putting things bluntly, either we have another very serious credit event with consequences at least as severe as the Lehman Brothers bankruptcy, or stocks are probably a buy.If the professionals are at a lost, where would that leave us?