The market plunged lower today. The near term looks more bleak than expected. The market has reached 2906.79, down 40.75 in a single day. Although this 1.38% loss cannot be compared to the more than 2% losses 3 months ago, it is rather significant in bringing the market closer to its March levels.
Counters-wise, the 4 winning components of the market were out-numbered by the 26 losers. It is interesting to note that SembMar is now more expensive than Sembcorp. I would expect the price of the parent to be at least a bit higher. SingTel fell to 3.57, the tip of its previous bottom leg in the past month. Looking at the big black candle today and the dark cloud yesterday, SingTel can be expected to fall lower, bringing the index with it. The Banks, interestingly, are just starting to go "bear" from their RSI falling out of the 40% - 60% range.
My near term revision of "the bottom" is at 2900 +/- 50 now, shifting only 50 points downwards. The rationale here is that Wall Street indices are showing signs of a rounding bottom in the near term. The chances of yet another significant plunge is not likely in the near term unless oil prices continue to surprise us as they did last week. Regional indices like the HSI and Nikkei as carefully coupled as well. On the part of the counters here, most index counters have hit their lows. Further downside is possible but may not be very significant. This shall play a part in supporting the index numbers.
Buy period can be soon. I shall be carefully monitoring the situation and providing my reports. Keep watch daily these few days to get up-to-date highlights.
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