Friday, October 3, 2008

Singapore Stock Market Trend: Not bottom yet

In line with the Dow Jones and S&P500, the STI is showing no signs of bottoming. Looking at the various levels of support and resistance, we can only conclude that there is more down side. So far, the volume does not show any sign of panic selling, unlike 1998 or 2001 or even March 2008. The current down trend seems to be slow and steady. In that sense, we will have to wait for the slow turn around as well. We should not expect quick bottoming even if the US$700 bail out plan (or buy out plan as some would like to call it) is approved.

Here is the STI chart.


There seems to be some divergence from the indicators which may signal some short term rebounce. Nothing is indicative of any sustainable rally coming (talking about sustainable for a for over 3 months). The market can stay oversold for quite a while.

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I'd like to share my experiences and knowledge about healthy and happy living as well as mid-life crisis. 不以物喜,不以己悲。