Another Negative Closing
Oh my God… Not again…
The regional is not looking so good either. AORD Aussie is down by 2.43%, Hangseng is down by 2.48%, Nikkei225 is down by 4.12% (the biggest one day percentage lost in two years), Singapore’s Straits Times is down by 1.93%, and JCI Indonesia is down by 2.87%.
This regional plunge (or should I say, mass bungee jumping?) is caused by a global sell-off (because their European counterpart also suffer the same plunge). Most of the negative effect on this stock tumbling can be drawn back to Bernake’s intention to further increase the interest rate offered by The Fed.
In effect, this triggers global sell-off for risk aversion while the market hopes for the worst. This sell-off is causing the US Dollar to gain strength relative to any major currency in the world.
On my previous analysis I state that the market will do a minor rally this week, but this event somehow made that analysis seems somewhat hard to reach. Nonetheless, the candlestick chart for yesterday is indicating a reversal pattern (”Hammer” as you may call it) so I think that the market will still rally this week but not much, probably break-even from last Friday’s closing, or over by several narrow points.
Will the market rally tomorrow? I doubt it, but the bullish spectator might be buying stocks at bargain price that will push the price up for tomorrow but again, there’s no technical indicators that support that.
For newbies (like me), stay away from the market at least until the end of June when Bernake finally thrown his Thor’s hammer on the stock market. For pros, it’s a good time to pick bargain stock and to day trade ;-)
