Where is KLCI heading from here?

I believe this is a million RM question that everybody wants to know. I believe KLCI is on the verge of a major pullback/correction which will reverse the current uptrend.

So when will it happen? Honestly, I am not sure. I believe nobody know the answer either. Wait a minute, the stock operator will know the answer, but will they tell you? The answer is a big "NO".

Based on my short term technical analysis, I believe the time is almost ripe for a reversal. However, the MACD and Stochastic do not show a reversal signal yet. Therefore, I think KLCI might have a few days more or even weeks before the trend reversal happened.

However, if you look at the 1st chart above, it is pretty scary looking at how high the KLCI has gone from 800 to the current level of 1,500.

If you still think you can make good money on KLCI, I just want to tell you that the smart money have already move out, now that the dump money is slowing supporting the KLCI. Once the dump money, discover KLCI will not go any further, all hell will break lose, trust me, when the Volcano burst or the Tsunami come, you will have no time to run.

However, I might be wrong, KLCI might still go further, but the risk is too high and is like swimming on the sea knowing that the Tsunami is about to come and eat you alive.

Run baby run!