Market Technical Reading - “Sell Into Strength” Before A Major “Sell” Wave Ahead... - 10/5/2010

Local Market Leads:
♦ Led by the last-minute purchases on selected blue chips, the local market bucked the regional downtrend to end positively on Friday.
♦ The US DJIA plummeted as much as 998-pts at one stage amid suspected erroneous trades on the Dow’s key blue chips like P&G and 3M, before staging a sharp recovery by paring down its losses to only 348 pts at the close. The market later blamed the electronic automated triggers for the massive sell orders earlier.
♦ This in turn, prompted a broad-based sell-off across Asian region on Friday. But with the return of fresh bargainhunting activities in the afternoon amid a rally in the US futures markets, most regional peers trimmed the early losses at the close. Hang Seng fell 1.06%, but off its early loss of 2.16%.
♦ Surprisingly, the local FBM KLCI added 1.02 pts or 0.08% to 1,332.89 on last-minute push-up on the key heavyweights like Axiata (+11sen) and Digi (+30sen), after dropping as much as 16.19 pts at one point.
♦ Turnover increased for a third consecutive day, rising to 937m shares versus Thursday’s 899m shares. Still, the losers trashed gainers by a ratio of 5 to 2.

Market Technical Reading - “Sell Into Strength” Before A Major “Sell” Wave Ahead... - 10/5/2010