KLCI Index

KLCI Daily Chart on 28 Sep 09

KLCI Daily chart is showing a bearish divergence between price and MACD. You can see that KLCI made a higher peak in Sep 09 than in Aug 09 but MACD traced a lower peak. At the same time volume has been getting lower too.

DJIA Daily Chart on 25 Sep 09

You can see that DJIA daily chart is also showing a bearish divergence between price and MACD. It is not only a bearish divergence but a triple bearish divergence, which is more bearish! The volume has been getting lower too.

These are very bearish signals. The market could be due for a correction.

I am scaling down my position just in case it would happen! At the end of today I have more cash than open positions in my account.

Disclaimer:

Trading and investment involves risk, including possible loss of principal and other losses. I shall not be responsible for any losses or loss profit resulting from trading or investment decision based on my posting and information presented in this blog.