Wednesday, January 27, 2010

STI Plunges - For a Second Day

STI started the day well today, up by almost 20 points, then early gains were pared down around lunch, and then some ziz sawing in the most of the afternoon.  Then suddenly an hour before the closing, it went down by 34 points!  This is not a very good sign.  It means the market is weak.

Together with yesterday's 71 points plunge, STI is down by more than 100 points in 2 days, and it has come down from its high of 2900+ to 2706.  Looking at the STI chart, it is not very good.  The next support only comes in around 2600 points.  Another 100 points plunge is possible.  The support after 2600 is around 2500.

I probably will pick up something at around 2600, if there is any sign of a rebound.

Well, the way down to 2600 might not be a straight line.

This is the time to test your trader/investor psychology, whether you can indeed carry out your war plans accordingly, no matter you make a profit or loss. 

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