In line with our forecast, the STI has closed below its October 2008 low of 1473. We previously mentioned that when the S&P 500 and CRB broke its lows, the STI would almost certainly follow suit.
As mentioned, our view is that the STI breaking its lows is indicative that the third leg down of the bear market for the STI is beginning. This is confirmed by the S&P 500, and further confirmed by some component stocks such as F & N and Capitaland that broke their respective lows ahead of the STI.
On an intra-day basis, today’s (10March09) market rallied off 1455. Should the market close below 1455, we should see the STI continue to slide lower toward 1400. In the daily charts, support is at the psychological 1400 level and then 1300 to 1309, which is a confluence of projected support and the 1300 level.
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