ST Index down to 3100 point, what's next?

For whatever reasons, ST index is hammered down to 3,100 pt, no joke a big sell out of almost S$2 billion for today trading alone! Based on the previous  years' patterns, this 3,100 points or level should be a very strong support line or reflexion point if it rises back to 3,200 points but the most. If ST index continues to fall below 3,100 points, the next supporting line should be 3,050 points, if this is broken then the index will continue to fall to a stronger support or resistance level of 3,000 points.  If this support line is broken again, the next crucial reflexion point will be 2,950 or 2,939 point.
If this 2,950 point is not reflexive, then the index could slip all the way to another reflexion point, i.e 2,800 point.  If this 2,800 is again not refexive, the worst case scenerio will slip to the rock bottom of 2,700 points.
My friend asked me what if the index falls below 2,700 points? My answer to him is that this is most unlikely to happen as today's situation will not be as bad in 2009 when the market started to recover from the sub prime worst crisis. If it does fall below 2,700 point, I will throw my chartings first thing  out of my house windows!!!
 

The reason is funds are outflowing from Asia back to developed markets such as the USA.


U can read about it at :

www.businesstimes.com.sg/sub/companies/s...,4574,425325,00.html


btw, why you create 2 threads with the same posting? Make me too excited but the postings are the same.....

ST Index now broke the level of 3,050 pts to 3,034 pts this morning and is testing the next pyschological and support level of 3,000 pts. If this 3,000 pts is broken, the next critical reflective point will be 2,950 or 2,939 pts, and if not refective will be testing another stronger support line at 2,900 pts.

Investors are irrational to sell good stocks currently.

The market is displaying its irrational side  - reminds me of the high-tech stock bubble and proves once again that markets are less than efficient…. It is sometimes, like now driven by emotion.

When will the market return to a calmer and more rational level?

It's not irrational fear, but calculated fear that Libyan will drive up oil prices, but the worst fear is that the unrest spread to maybe saud and Iran try to be funny at the same time with isreal reacting strongly. That will really throw the world economy into a tailspin with old prices running away and dampening all the economic recoveries we have achieved so far. Will the situation get worse before it can better or forgotten, u bet. Will the worst case scenario happens? Most prob. Not. Protests at saudi has been mute compared to others and they are not taking chances. US and Iran neighbors know too much at stake for Iran to play such games, I speculate it is a distraction tactic by the Iran authorities. So, buy at correction? Buy at fear? Yes, but where is the bottom? This week and next will see a flurry of earning, if no further escalation of bad news and earning impressed, and market continued ti be sold down for the next few days, chances are high that a respite is on the way. No venture no gains Good luck, so much for rabbit being a docile animal, so much violence and unrest. Sigh...

STI has rebounded. It's the correction over or is it technical rebound? I did some quick research and found out the following : The Korea crisis which turned out to be a non event cause VIX to go to only Slightly above 20 and the correction was short and shallow. The euro crisis cause the VIX to rise to 40 and result in an 15%correction in the STI. In 2007 when the economy is at it's peak and booming, the constant creeping up of oil prices from end 2007 onwards to aug 2008 (height of oil price) cause VIX to hover Around 30 and 20 plus and cause the STI to correct some 20% before Lehman came push everything to a freefall. My guts feelings of the middle crsis is that it is more serious than Korea crisis but worst come to worst, it should not be worst than the oil peak problem in 2008. It might be somewhat similar to the euro crsis, but the VIX doesn't seem to put the two in the same league. Thus, perhaps if the crsis dun spread to suadi, an 15% correction is the worst we get. The STI has already correct 10 %, those who are predicting a turn for a worse, that things will worsen can wait for STI to go towards 2850. Those who believe libya is the worst it can get. Thing the correction is almost done. Although I dun think the market will rally strongly thereafter either.