The Index is marginally supported above 1270 today. However the overall trading volume is lower than 40 days volume moving average (VMA). When the market is consolidate, it is okay to have a lower volume. But looking at the lower liners, it is actually still under a further correction on many counters. It is not easy for FBM KLCL to fall after the bendmark KLCI 100 is replaced by FBM 30 composite index. The reason is we just need to support a few big caps like CIMB, Maybank, PBB, IOICorp and Tenaga. So it really hard for us to analyse for KLCI correction.
By looking at the chart below, FBM KLCI was encountered a bearish divergence during Oct 09 but somehow it doesn't fall. Although the KLCI still considered as a bull but it is a weak bull. The strength is getting weaker. Will it burst one day? I want you to take caution right now, the heavy weight counters are a bit expensive eventhough the PE is reflecting 2010 forecast earning. So be more sensitive on your investment, avoid buying any bad fundamental and low liquidity counters.
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