Markets Making New Lows - Where is the next Support?

Just last week I wrote about getting prepared for another ride down (with an exclamation mark) when immediate support levels in the market were broken. This happens after the market failed rally after the US Fed bailed out mortage giants Fannie Mae and Freddie Mac.

The latest credit crunch casualty was one of the top financial house, Lehman Brothers which the government unable to provide any assistance and this sent stock markets around the world taking a deep plunge. The Latest news was that the US Fed has rescued insurance giant American international Group (AIG) with a US$85 billion loan and Barclays buys Lehman Brothers' banking unit.

I believe this is is just the beginning of a domino effect. News are being reported that investors are thronging insurance companies to find out more about their companies financial standings. A massive cash-out from investors will cause the dominos to crumble faster.

Markets are making new lows and major support levels were broken. Where are the support levels now?

Malaysia Kuala Lumpur Composite Index (KLCI): Support level of 1,030 points broken. Next support 930 to 950 levels. A longer term support is at 800 points (from the head and shoulders pattern). I will post more details on the KLCI later. Update 18/09/08: Click here for more details.

Singapore Straits Times Index (STI): Support of 2,540 points broken. Next support level is at 2,100 to 2,200 points. I will post more details on the STI later. Update 18/09/08: Click here for more details.

Hong Kong Hang Seng Index (HSI): Support of 19,000 points broken. Next support level is at 15,200. I will post more details on the HSI later. Update 18/09/08: Click here for more details.

Japan Nikkei 225 (Nikkei) Index: Support of 12,400 points broken. Even the major support level of 11,700 points was broken yesterday. Next support level is at 15,200. I will post more details on the Nikkei later. Update 18/09/08: Click here for more details.

US Dow Jones Industrial Average (DJI): The 10,800 support level was tested again and rebounded. With the negative news and weak Asian market performance, the DJI, being the major catalyst of plunging markets, is expected to decline further. Next support level is at 10,000 points. I will post more details on the DJI later. Update 18/09/08: Click here for more details.

Update 18/09/08: Click here also for Thailand market update and details.

Commentary and analysis by Benny Lee