The market correction could be over

The market outlook has continued to improve. It is very likely that the recent market correction is over. I have come to this conclusion after making the following observations:

1. The KLCI has closed above its recent highs of around 1368.
2. The 10-day SMA has crossed above the 20-day SMA.
3. The daily MACD is nearly done a positive crossover.

In addition, you may note that the volume traded has increased to 1.5 billion units. In the light of these positive signs, I believe that we can add to our long positions again over the next days, especially if the market were to soften a bit.


Chart: KLCI's daily chart as at June 6 (courtesy of Tradesignum.com)