Dear readers, Dow Jones Index (DJI) went south by 4.44% yesterday. The bearish performance of the global stocks markets have all been what I have been anticipating. I realize that while I have been sharing my thought of the near-term support of the local Straits Times Index (STI) which is 2,000; I have not been sharing with readers my thoughts on the Dow Jones Index.
The Dow Jones Index was 20,943.51 as of yesterday. If my thought is that the Dow Jones have every reason to head south, what level will the Dow Jones Index reach as a support? Before I go on, there is something which I would like to share with all.
On 1 Feb 2009 during the global financial meltdown, the Dow Jones went as low as 7,062.93 which is really at 35% of the current Dow Jones Index mark or 65% down from the current Dow Jones Index level. Considering that quite a number of investing commentators have remarked that the current Covid-19 pandemic would be worst than the 2009 global financial meltdown considering that all industries will be affected, will we be looking at a minimum of 65% crash for the Dow Jones next?
Considering that the Straits Times Index (STI) closed yesterday at 2,440.27; will investors be looking at a 65% crash of the STI from its current level so that the STI could crash to 850?