7 February 2020

Dead Cat

The STI rose strongly in the middle of the week, closing the big gap formed on 28 Jan, the day after the Chinese New Year holidays. Today it dropped by 50 points. It was a dead cat bounce. The STI is likely to drop further, heading towards support at 2955.68. Along the way, it is hoped that it will get support at 3112.33 which was the prior low. Or perhaps at 3040.16 which is the bottom of Subwave w (brown). The coronavirus is affecting market sentiment and causing economic problems worldwide. We just have to hold tight.

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