US markets dropped sharply overnight. If we were not sure that the current uptrend which began in February 2016 is over, last night's sharp drop should have sealed the deal for you that the current uptrend is over. You can see the weekly charts for DJIA and Nasdaq.
Chart 1: DJIA's weekly chart as at Oct 24, 2018 (Source: Stockcharts.com)
Chart 2: Nasdaq's weekly chart as at Oct 24, 2018 (Source: Stockcharts.com)
Our hope is that the US markets will not plunge but merely correct in a normal mode. These are the potential low depending on the level of retracement in the market. Needless to say, global markets will be dragged lower as would our Malaysian stock market. Good luck!
Table: DJIA & Nasdaq's Potential Retracements & Targets
Note: I've revised the above table to include in yesterday's closing index for easier comparison.
Just one last comment on our market; I believe that FBMKLCI will be testing the 1670 support severely over the next few days. Unless and until FBMKLCI has convincingly broken below the support at 1670 (as per my post dated October 23), our market might withstand the crosswind from US markets better than we fear. For now, we can only sit and wait.
No comments:
Post a Comment