 (Updated: 28/05/2000)  N.B. Above Chart is abstracted from Metastock Program Last week we said that, "With the only bright spot, the Manufacturing Sector, been damaged by last week massacre in Contract Manufacturing companies, our Singapore market is now completely at lost. First, we had a big correction in Properties sector (some stocks had fallen more than 50% from the peak), then came the broke down in Financial sector few weeks ago. And now, the Manufacturing sector has decided to join the party. With all these major sectors pointing downward, we believe our market simply do not have a chance for speedy recovery. Indeed, it is more likely to continue drifting lower towards 1850-1800 as per our prediction last week." Indeed we were right to the dot again! STI did continue to plunge and finally hit a low of 1804 and closed at 1820 last Friday. We also said that, "With Nikkei hitting a new low, Hang Seng and Kopsi just a few points above their recent low, the Asia stock markets look set for a possible of another melt down. We believe if Nasdaq can not hold its recent low (3107) in the coming two weeks, the whole Asia markets will face another big sell off. And that will more or less confirm the beginning of our global bear markets." Again, it was exactly what had happened in the global stock markets last week, when every markets began their big sell off. Last but not least, we said that "As for Sesdaq, expect it to continue drifting lower. A break below 110, will signal a continue sell off towards 100 and below." We were right again, Sesdaq had not only plunge through 110, but dropped below 100 and closed at 97.69." In conclusion, all major indices had achieved our primary target, and their drop are all within our expectation. So, are we going to continue seeing the melt down? When will the possible bottom arrive? How bad is this bear market? Now we have begun to hear more and more pessismistic views in the market, by way of media reports or investors in general. It looks as if that suddenly the lightning has strike and that everyone has woke up to realize that we are now in a bear market! But that is certainly not from Elliott Wave technicians point of view, for all wavers should have known this action few months back and are now seeing the real facts unfolding. With major uptrend been broken in all Asia stock indices, it is unlikely that we will see a drastic U turn very soon. But nontheless, with markets deeply oversold now, some technical rebounds are likely. Expect STI to trade within 1920-1780 in the coming weeks before a break down towards 1700 in the later part of June. As to what is the eventual target, we shall discuss it in the coming week. The pattern next week will probably be a rally in the early part of the week before circumb to selling pressure and move down by end next week. As for Sesdaq, a rebound towards 105 is quite possible but should eventually give way to selling pressure and drop to our long term target of 88 in the coming month. The rebound, if does arrive, will be on broad base and give people an illusion that it is a bottom and that we should all rush in for bargain hunting. Do not fall into the trap! You should instead take this opportunity to unload those shares that you have no intention to keep for long term.
We have finally cracked the long awaited 1970-1930 level, which signaled the beginning of an intermediate down trend (at least!) in the coming months. This break down has now open up two possible long term scenerios and we shall discuss them in our long term perspective site. Please check it out for our latest updating in the Long Term Perspective page. One of the possible Intermediate bottom may be at 1700, for it represent the 50% retracement from 800 to 2580. We shall discuss it more detail next week.
Events To Watch For The Coming Weeks/Month .
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