As the saying goes, when it rains, it pours and it does seem to apply to the financial markets given the downward movement experienced since the start of the year. The question being asked is if there is any reprieve in sight. With the overbought/oversold (OB/OS) indicator in the Business Times today at -1064 (http://eresources.nlb.gov.sg/newspapers/Digitised/Article/biztimes19880319-1.2.22.4.aspx), it is possible that the Singapore market might be due for a short rebound, due to the current oversold position that the market finds itself in.
Assuming the close of the market today is about the current index level at time of writing, and with not much further large increases in traded volumes, there is a good chance that the market might have be exhausting itself on its downward movement for the time being given the drop in traded volume. The candle formed would also be that of an abandoned baby candlestick which is normally a fairly bullish indicator.
Should a decent rebound take hold over the next few trading sessions, the market could bounce to the range of 2692-2714.
Abandoned Baby Candlestick
http://www.investopedia.com/terms/b/bullish-abandoned-baby.asp
Like the famous line from the movie The Crow, it can't rain all the time.
