Huge drop in Dow Jones

As my heading says it, the Dow Jones showed a huge drop on it's chart with a long black shaven candlestick. A drop of 2%+ for the latest closing is bearish since drops of 1% is common in the volatile markets recently. The drop was accompanied by very heavy volume for the past few closings and this is very bearish too.

So what can happen on monday ? Given that the drop for the DJIA occured on friday and we had a break of 2 days over this period, we will know it 1st hand whether the market sentiment has change by seeing whether the Straits Times Index will open with a gap down. But things are complicated since in recent weeks, STI dun seem to be following the movement of the DJIA. But i do tink that STI will tank on the opening on monday. Well i can be wrong too.

On a personal note, i been looking to this correction. I have been sitting on the sidelines for quite some time already ever since the market turn volatile and bearish divergences was spotted. Only when a correction happens, den there will be room for a healthy bull run subsequently. Corrections are always a good time for investors to get their stocks at a cheap price too.

Dow Jones Industrial Average: