From a peak 3400 level, the STI is now down 9% over the last 3 months as fears of the tapering of QE, the rising of interest rates & the US debt ceiling looms over the globe.

The 3000 acts as a key psychological support level that was not broken during the June sell down two months plus back.


However this time round I feel there are more factors in play and there's a higher probability of STI breaking below the 3000 and thus entering the bear zone. If I would to make an educated guess, I would say there is a 50% chance that the 3000 support level would be broken.

Previously I had written about buying the index, details can be found here.

If I had only two bullets to fire at the STI ETF, I would probably want to pick up some at the 3000 level and ......