Thursday, November 10, 2011

Why KLCI should drop 25-35 points today?

1. Everyone knows DJIA down almost 400points yesterday. But the difference is gold also drop 1.2% to about US$1770. In normal drop, investor will flock to gold. But this time with gold also down. What does this mean? The fear is so great that investor choose to hold cash. Be prepared... this may just be the start of another major correction.
2. Futures open at about 1455-1460 points, representing 30-35 points discount to yesterday close.
3. From technical view, KLCI 14-day RSI is at 63, very close to overbought level of 70. It is also has pretty much downside to at least below 50.

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