Alright lets get started.
Lets look at how the US market closed last night.
The Dow closed down 102 points or -0.78% to close at 12,927
The S&P500 closed down 12 points or -0.84% to close at 1,367
The Nasdaq closed down -30 points or -1.0% to close at 2,970The S&P500 closed down 12 points or -0.84% to close at 1,367
Wow.. looking at the closing, we actually recovered a bit of the loss during the cash hour trading! At one point during the premarket trading in the afternoon, the Dow was already down -120s.
Anyway, the S&P futures could not break the 54 level of support yet so the flag formation is still intact. But we were real close to breaking it though, so I would be watchful for the coming price action in this contract as a downside break out may accelerate the downside break in our local market too.
From today until Friday, we will have economic reports in the US every single day.
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Whats in store for us:
This is the KLCI index daily chart. So we finally closed below the 20ema eh? Just yesterday we were just knocking on the front door but have yet to close below it. Do you all know when was the last time we did this?
The last time should be around November of last year. During that time, we closed below with energy like now. But after about a week, we traded back up and traded above the 20ema in a choppy range before the nice rally from Jan 1 onwards.
So, what can you guys make of this? Will this close below the 20ema be significant or not? I guess it really depends on your view does it not? We have some traders here short all the way from up above when price could not break 1600 again last week. While we also have traders being caught long as well.
As for me, with the election coming and all, I would want to look for an opportunity to swing a short as long as we maintain below the 20ema. If the swing position doesn't materialize, then I will be scalping the daily levels as usual lah.
So trade carefully. We have yet to break the flag pattern in the S&P so I think we might recover a bit of the losses today perhaps? Or would some large institution get spooked by the price action yesterday and start to come on and dump more shares? We will see. Trade your levels carefully. Buy where support is holding and short where resistance is holding.
Here are the levels for today:
FKLI
Upper Resistance: 1578, 1580, 1583, 1585, 1587
Lower support: 1575, 1572, 1569, 1564
Cash Index:
Upper Resistance: 1587, 1590, 1592
Lower Support: 1583, 1580, 1576, 1573
Trade safe all! Make some dough!
Best Wishes,
Tech Trader
ps: I'll come back to correct the typos later. :)
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