Good Morning Everyone,

Dow Jones went down this morning by -103.84 points, and closed at 9,908.39. Singapore market would gap down when open. The movement of the individual counters would be dependent on the market movement later in the day, so please take note of the regional market movement as reference.

US

Unfortunately, Dow did not manage to hold above the psychological 10,000 level. The US Stock Market fell during the session in view of the Europe Debt crisis and economy outlook.

The Psychological Support for Dow is currently at 10,000 level. Technical Support is at 9771.91.  

My thoughts: As mentioned since last week, the ripple effect of the Europe’s debt issue will continue for quite a while, hence its not surprising that Dow failed to stay above the 10,000 mark.

As for whether the market is ready to rebound or drop further, we’ll have to see if Asia is ready to lend a helping hand to the rest of the world by being bullish these few days. If not, then we might see a continuous drop in Dow.

Singapore

Yesterday STI gapped up, went down shortly after but climbed back after 3pm. It eventually closed at +10.06 at 2693.62. STI would gap down when open today. Its current support is at 2683.56.

Today the Asia market is likely to be a little weak, as there is no sign of recovery from US or Europe for the time being. Asia will need to take the initiative to fight for its own recovery these few days. STI needs to stay above 2693.07 for further upside. STI will gap down and then climbed up a little in the first 20 min of the market, but after that, its anybody’s guess.

Please be cautious of the effect of China’s Stock Market possibly dropping. I will be cautious and nimble in entering the market today, and would enter smaller lottage for the time being.

Suggestion: Watch Shanghai for any upside movement, as it will likely dragged the rest of Asia up!

I am more inclined to wait and see for today to see if the rebound will be coming. I will update later if there are any counters worth looking into, for short term trading.

Thank you and have a Profitable Trading Day!!

Herman Loo