A greater gap down !

Today really 'no eyes see' for the chart of STI. It gap down with a even greater gap for the latest closing. Whether STI can close back the gap will depend on the Dow Jones. I noticed that from the chart of STI, it gap down effortlessly through the important 200d MA. Looking at the chart, i believe STI will either test the 200d MA or find support near 2930 due to the 2 factors below.

1. Near 2930 coincides with a fibbonacci retracement of 50%
2. Near 2930 was an area of support during March 07

Right now, STI currently is supported near the fibbonacci retracement of 38.2% and i noticed that around this region was an upside gap that was not filled during March 07 too thus this gap may be acting as a support currently.

Straits Times Index Chart:


I charted the support that Dow Jones can find around 1 month ago and the link is here

Anyway, it is really strange to me that though the stock market is quite bearish now, if u look all around u, u still can see speculators trying to enter the hot property sector where the prices of properties are still increasing and the government forecasting an even greater economic growth in the subsequent months. Analysts are still churning out reports that the fundamentals of the economy and companies are still solid. I do think that the stock market is a leading indicator of the economy so if the current situation turns into an even greater bear market, we should be expecting an economic slowdown soon i guess.