Current state of markets: Sentiment has clearly beaten the fundamentals. Narrative has been that if the news is not as bad, the market will rise. Mr Market has clearly ignored the bad news.
Let’s go back to the charts.
FBMKLCI
- Taking 10 Feb 2020 as the peak – based on Fibonacci retracement, FBMKLCI has re-traced to in excess of 50% of the peak (50% mark at 1,382). Next resistance at 1,423. It will be a bear rally if it falls below 1,341 mark.
SPX
- Taking 10 Feb 2020 as the peak – based on Fibonacci retracement, SPX has re-traced to in excess of 50% of the peak (50% mark at 2,776). Next resistance at 2,915. It will be a bear rally if it falls below 2,637 mark.
Let’s see how things develop in the next 2 weeks. Remember this: “Sell in May, and go far far away….”
This is not an investment advice or endorsement. Please refer to general disclaimer of this blog.
