In a time of crisis, capital markets are closely correlated i.e. their betas with respect to one another tends to "1". The markets have been heading south at the same time. The market indicators in my Tiger Dashboard show 5 blue-chips and 5 major indices all in the red for Tuesday and Wednesday. In Asia, markets have been falling with the Hang Seng at the lead, losing 1.35% and the Nikkei close behind with a 1.05% loss on Wednesday.
The STI shed 40.70 points on Wednesday after a good morning of treading above the water. It has been 2 black crows and I expect to see another one coming. The next resistance point to break is 3000 points. Once it starts trading consistently below this mark, I would expect it to remain below for a few months to come.
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