Monday, January 21, 2008

Spectacular Dive

STI held up pretty well in the morning, hovering around 3000 points. Then the fireworks came after lunch. All of a sudden, the STI dived down by 80 points, then 100 points, by the time market closed at 5pm, STI already went down by 187 points, ended the day at 2917 points. Wow... That is really something. Just a couple of days ago, people were still talking about strong support at 3000 points, a technical rebound maybe coming. Then we started the week with a big crack in the 3000 points support level.

What next? Once the 3000 support level is broken, the next support level is 2700 points. As the sold-down today was too massive, to drastic, I would expect some rebound in the next few days, at least in the morning. However, I was also told there are many margin calls to cover in the next few days, so tread carefully. Medium to long term, still DOWN!

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