Somehow I begin to see Asia indices following Nikkei very closely. We have an excellent day in Nikkei today, having risen 345 points in the futures now. Hence Asia rises today, with Hang Seng increasing 270 points, STI 12 points, KLCI 10 points.
We anticipate the drop in Nikkei for these past 5 days to stop these few days. In fact I think with today's turnaround, there is a chance of a short term rebound.
Check our chart on Nikkei based on our Cash Ringing System (CRS). It shows a halt to the downtrend.
Let us see if it will cause STI to once again try to test the 3280-3300 resistance area, and whether KLCI will break above 1800 again.
So far, a short term rebound seems very likely.