Why I think the current torrent of selling is overdone...again =)

Everything was sold down today, without exception. Many stocks are showing short-term bullish divergence, like Ferrochina below( which I entered at 3pm):





















Based on the daily charts, equity markets look set for a rebound.

Personally, I must admit that I was shocked by the ferocity of the selling in Malaysia, where both blue-chips and popular speculatives dropped like flies. News reports have conveyed today's selling as a 'capitulation'. What they failed to mention was that temporary lows occur around capitulation points!