2 BIG Investment Giants Disappeared Today – Singapore STI Plunging Day!!!

We were seeing massive volatility and gapping occurring on the Singapore Straits time Index last week. The singapore market was resisted by the gap resistance and it eventually also broke the gap support and followed by a massive landslide down hill.

We can also see from the price action last week that STI is heading lower and lower to break new low. That is a key characteristics of a down trending market.

Finally, the market burst today and plunged massively by another 3%, losing 80+ points.

Let’s take a look what is the outlook ahead.

2 BIG Investment Giants Disappeared Today

It was announced today that Bank of American will buy Merrill Lynch and the talk between BoA and Lehman was unsuccessful. That resulted in Merrill Lynch disappearing from a once successful investment brokerage house. Lehman also filed for bankruptcy protection after finding more investors to take over or pump in fresh capital.

2 Big Investment Giants are going to disappear in the financial world. This is the another round of ripple effect from the sub-prime crisis that happened almost a year ago.

You can see that almost all stock markets in the Asia Pacific region plunged today, including Singapore STI.

Instead of looking at daily chart, let’s look at the weekly now to remove the daily fluctuation.

Down Trending Singapore Straits Time Index (STI)

You can see that STI broke the 200w MA support and after which, all black candle formation keep breaking new low. I am seeing the immediate support being near the 2,445 level which was a short period resistance previously. The second level support would be near 2,340 which was also a previous support level.

Another scary fact being that the STI has lost almost 50% of the 4 years gain in the bull run since 2003 in just a short period of less than 1 year. Furthermore, if we are looking at the market using Fibonacci, we are also seeing that 50% Fibo support level has been cracked and the market is diving down to test the 61.8% Fibo support level that is near 2,240.

I have been hearing many people saying the market is almost near its bottom, it is a good time to start buying in the stock now. I would not agree to that. It is very scary to note from the chart the market continues to dive down further and further. I am not seeing a reversal yet from the chart pattern. So, we must HOLD and do not enter the market to hold new Long position.

I might be wrong in my analysis as there is no way to predict the market 100%. There is a possibility that the market may just turn and start moving up. I may miss the boat this case.

However, think about it, I would rather be wrong and miss the boat, instead of taken the wrong boat and dive with the Titanic.

Singapore Straits Time Index Plunging Stock Market Trends

DISCLAIMER: This information is used for learning purposes only. It does not constitute an offer or solicitation to buy or sell. You should do your own analysis on top of my postings.

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