Singapore Straits Time Index suffered a bad fall last week while the white house was negotiating the bail out deal with the congress. Finally, the good news came last Friday that the house of representatives had finally gave the green light to the bail out deal.
However, that much awaited good news did not manage to lift the markets. Conversely, it sent the market to a deep dive today across the regional and world markets.
Singapore Straits Time index suffer another round of big bad fall today. Let’s take a look at the STI charts!
Singapore STI Broke Key Fibonacci Support
I mentioned in my last post that key STI support was near the 2,307 level and the market may find a support near the 61.8% Fibonacci support leve. I was wishing that would be true such that the market can find a good bottom to reverse to an uptrend.
However, the market did not manage to hold well on the 61.8% Fibonacci level and it broke the support with a dark candle. The selling pressure is sending the index down by more than 100 points.
Based on technical analysis, that is an extremely bad sign to give way at 61.8% level because the next Fibonacci support level will be 100%, which is the 2003 low. In other word, looking at the current trend, the market may be likely to continue its bearish down trend to test the low of 2003. If that turn trues, we may lose all the gain that we enjoyed in the last bull run. We will be back to the a level of 1,200.
That would be a scary fact or truth to face by all of us. I wish there to have some miracles happening in order to give a market a boost. If you like to long at the present time thinking the market has hit the bottom, beware and I do not think it is a good time now.
Very Bearish Sign Singapore STI Broke Fibonacci Support
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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