Asia market today seems to be dragged down by Nikkei 2% drop. The market seems to be in general consolidation or weakness since the good news of the debt ceiling. This is what we called, buy on expectations and sell on news.
Although the market is not panicking, it needs a rest. STI seems to be resting quite nicely above the 3200 region. Do take note that we expect STI to go for 3270-3300 by year end. KLCI like what we expected broke 1800 barrier. Now it is at 1814. We expect KLCI to have a strong resistance at 1880 should it reach this year.
Today in America, Amazon and Microsoft, 2 big giants in the retail and tech industries both issued a good earnings. I really think that this last quarter, we should look at the tech sector. Christmas rally should be ringing the bells this end of the year, due to the good earnings.