Reply #97: A day too far

[xchrom]

http://www.atimes.com/atimes/Asian_Economy/MH20Dk01.html

MONTREAL - Asian markets were doing more or less fine, showing a net gain on the week, before the sell signals rang out after steep overnight drops in the United States and European markets. The gains were lost, Seoul giving up more than 6% on Friday, and stocks were set up for their fourth consecutive overall weekly decline.

Volatility was moderately negatively (-0.40) correlated with percentage move: the more volatile an index was, the more it lost; and eight of the 10 national markets reviewed here were losers this week.

The Australian All Ordinaries Index closed at 4,172, down 1.6% on the week with the suggestion of an oncoming reversal to the upside after the recent precipitous decline, bounce and retracement, the last due to a short-term overbought situation now


possible resolved. The reversal, however, is far from certain: it is now walking a tightrope along a long-term (since November 2007) ascending-lows uptrend support. Volatility declined throughout the week. Some other indicators turned moderately favorable and momentum also improved but remained steadily moderately negative.

In Northeast Asia, South Korea was the most volatile exchange of the week and Japan the third-least volatile, but both ended with overall median losses. The KOSPI in Seoul closed at 1,745, down 1.9% on the week (and down 6.2% on the day, erasing Monday's gain of nearly 5%) and seeming to be trying to reverse to the upside after resolving a short-term oversold situation. Volatility declined throughout the week to a moderate level, but momentum remains significantly and steadily negative.