Three weeks and you're out! Cautious consolidation following August's slump in the Jakarta Stock Exchange Composite Index has resolved itself to the downside with the lowest weekly close since December 2013 and bearish momentum almost as strong as late last month. The MACD histogram turned bearish late April, 50- and 200-day moving averages managing a "death cross" in June. Current volumes are a fraction of those in 2009 but might pick up, as has implied volatility, on a break below the psychological 4,000-points level. We shall expect a test of this area next month. Short term pencil in a drop to 2013's low (3,850), below here another fall to the psychological 3,000 level.
