The Markets Had a Big Sell Off, what's next?

The free fall in the markets that started a week ago on Friday (2 Feb 2018) which cumulated to a low on Tues (6 Feb 2019) was a rather huge plunge of 12% for the US markets and 7.5% for STI.

For a fall of this magnitude, I am cautious that the "perma" US uptrend has been disrupted and we can expect volatility ahead. I am still expecting a rally/rebound of blue chips in the coming days and where the next rally ends will give a clearer picture of whether what is happening now is just a much needed correction or a sign that the market is getting toppish.

The market could be finding some support now and I am looking for possible short term upside in the charts below. However, should any of these significant supports be breached, then I will cut and stay out until the dust settles.

(click on the charts for a larger view)



S&P - Finding support at 200 Day Moving Average?

 Straits Times Index

OCBC Bank

 

SATS

On the Flip side, not all stocks are equal.  Some stocks like YZJ have confirmed a bearish Head and Shoulders formation and could be heading lower in the coming days. 

 



 

 YZJ

Disclaimer:

Any view, analysis or opinions expressed here do not constitute an investment advice nor inducement to trade. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of this information. Investments are subject to investment risks including possible loss of the principal amount invested.