As predicted on 2/23, the KLSE Composite index broke down through an ascending wedge pattern. Triple divergences do not fail in this market. The index looks like heading towards trandline support at 950 level. Bear in mind that markets always overshoot and 930 is not ruled out. 2 triggers confirmed the technical pattern:
- Weakness in the Dow, closing below 10,000 on 2/25
- Fears of supply overhang from the CLOB share release, although this will not happen for 3 months yet.
