Markets Hemorrhage
Today is a day of reckoning for most markets. The key trigger factor is the fall of Lehman brothers as they file for bankruptcy protection. Even Merrill Lynch is suspected to go down the same paths. I smell shorts ready to fire.
For Singapore’s Straits Times index, 2 major things happened. The 2500 level is clearly broken and the downtrend channel is breached too, on the downside. This seems to point to a very bearish signal. Unless the index rebounds back into the channel shortly, the downline line cannot be redrawn to compensate for today’s plunge. For the near term, the possibility of rebound is high due to an over extension outside the bollinger band. However, downtrend is still very intact.
Below is the STI’s 30 components’ performance for today. Only 2 out of 30 are spared. Notable declines are China stocks like Cosco.
