Market Outlook as at October 21, 2014

FBMKLCI broke its uptrend line at 1830-1840 last week. To regain the uptrend momentum, FBMKLCI needs to first, comeback above 1800 and then, to climb back above the uptrend line (at 1840-1850). Until FBMKLCI has climbed above 1800, the bearish outlook will persist. Until it has climbed above the uptrend line, the bullish sentiment will not be present.


Chart 1: FBMKLCI's weekly chart as at November 21, 2014_11.45am (Source: BTX)

Looking at the indices of US markets and key European markets, we can consider ourselves 'lucky'. DAX has formed a downtrend, with a lower 'low' and a lower 'high'. FTSE, S&P500 and DJIA have all formed lower 'lows' and, if the current rebound fizzles out, we will have a lower 'high'.


Chart 2: DAX's weekly chart as at November 20, 2014 (Source: Stockchart)


Chart 3: DJIA's weekly chart as at November 20, 2014 (Source: Stockchart)


Chart 4: S&P500's weekly chart as at November 20, 2014 (Source: Stockchart)


Chart 5: FTSE's weekly chart as at November 20, 2014 (Source: Stockchart)

Based on the above, we should not be too enthusiastic in buying into the market. This market requires us to exercise a lot of self-control.

Note:
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of any of the indices shown above.