We were seeing Asian market hitting resistance last week. I shall now take a quick look on Singapore Straits Time Index stock market trends now.
Let’s take a look at STI immediate support now!
If you have been following my posting earlier, the recent stock market crash on the Singapore Straits Time does not come in as a surprise to me. The reason is simple, there were many bearish signals we can observed using Technical Analysis way before the actual stock market crash.
STI started breaking the 200w MA support after ML take over and Lehman collapse in Sep, we also continue to see that STI broke the Fibonacci support one after another. The most recent one being the breaking the 61.8% Fibonacci support being extremely bearish signal.
Let’s examine it in detailed together!
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! (Video Included)
We saw last week that Singapore STI hit the 20d MA resistance. It was trading lower and lower last week after hitting the 20d MA resistance. At first glance, we thought that the uncertainty and negotiation of the bail out plan between the White House and Congress was dragging the stock market down last week and we were waiting for some positive news to finalize the deal faster in order to give the market a boost.
Finally, It was annouced yesterday that white house and the congress has strike a deal and they are not submitting the bail out plan to the congress for voting. But the news did not appear to lift the market upwards, it was a bad fall again today.
STI formed a big dark candle today.
Where do you think the Singapore STI is heading to this week?
After a high volatile week, the STI started the week with weak sentiments. The market retraced after hitting the 20d MA and 2 black candle was formed yesterday and today. The world is now waiting for the result of the hearing of US bail out plan.
If congress give a green light to go ahead on the plan, I believe there will be a boost to the worldwide stock market. If the congress hold back a bit, I am the stock market can possibly resume its down trend.
While waiting for the US hearing, let’s take a look at the Singapore Straits Time Index and stock market trends!
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.
Following the gap up and down on Hong Kong Hang Seng Index, Singapore Straits Time (STI) has experienced consecutive 3 days of crazy gap up and down too. This is extremely unusual and totally irrational, especially, STI close positively 122 points from Last friday close. That’s again is crazy.
Following the annoucement of the rescue plan from US government to the Fannie and Freddie brothers, it sounds like the whole world is celebrating today.
However, do you think this gain is sustainable to lead to a reversal from recent bearish market?
My last weekly stock market trends predicted that Singapore Straits Time index was facing some bearish forces. It indeed broke the support and also gapped down to break the year low formed in March. I am also predicting that breaking this March support will be very bearish.
Let’s take a look at the Singapore STI weekly stock chart now!
