KLCI shows a rebound in progress. If it can go above 880, then the rising wedge formation may be invalid. If the rising wedge formation is invalid, it could mean that KLCI is trap within the trading range 830-930. Situation keeps changing, with the higher probability of breaking 800.
Looking at the various sectors in KLSE:
Pay attention to the plantation sector. It may stage a rally if the cpo breaks above RM2,000. Is commodity price going to improve in this recession climate? Logically, I don't think so. But we cannot say on what the irrational traders will do. Anyhow, IOICorp and KLK CW can be a good play if the rally happens.
Looking at worldwide markets:
|Kospi||Down||Neutral (+)||Up (+)|
I'm not sure yet whether the market will plunge when the new toxic plan is unveil next week.