Is this the beginning of a Crisis ?

Today most of our local newspaper headline is "S & P Downgrade U.S credit rating to AA+".

Last Friday due to a biggest one day drop since 2008, Dow Jones declined more than 500 points, our KLCI open gaped down 17 points and drop as low as 37 points and closed with only 22.46 points declined. I would expect for more downside for the index this coming week with two reason :

1. The index is still trading in a downtrend.

2. Cause of the U.S credit rating Downgraded by S&P (this would cause more selling pressure)

If we take a closer look to the chart, last friday it actually closed below the 200 days moving average and the RSI is also heading towards the oversold region. However, the daily candlestick formed a potential reversal pattern which is the hammer but in the weekly chart there is still no sign of reversal yet and it is still trading in a DOWNTREND.

The next two support for the KLCI is pegged at 1474 and 1430. For the resistance is somewhere near the downtrend line which is 1535 - 1530.

The least i will do is not to "Long", if i'm BEARISH.