SET Index : After the break, get ready for act 2
September 26, 2011 Leave a comment
There is no question Monday’s fall was overdone, but we would be foolish to think it will end here and all will be well again. Hopefully there will be a dead cat bounce over the next day or so, but there is absolutely no good news to warrant anything more than a bounce as of now.
The idiot European leaders will ply us with rhetoric and bullshit, but unless they announce an agreement to create Eurobonds and go on a massive printing spree of 1-2 trillion EUR we are pretty sure the markets will punish their indecision once again, and it will not take long.
The SET Index could bounce back in to the 940-960 range – we are not sure of just how much of a relief rally will ensue, but the risk of a retest of Monday’s lows and ultimately a breakdown to 800 or lower is now very high.
A good number of downside targets we forecast over the past week have already been hit, and we admit to being surprised that it happened so quick. We now have to look at deeper levels in many cases and will post updates shortly.
Do not believe anyone who tells you its all up from here. Beware the broker who turns bullish now. Most missed the pullback and we have not seen many analysts pointing to levels we published here before the crash.