Potential short term technical rebound on the cards :

1. STI reached Fibonacci retracement support level of around 3320 –this level must hold up for market to stage a good technical rebound

2. BOTH STI and Hang Seng showing positive divergence MACD signals and stochastic signals with indicators forming higher lows while indices hit lower lows – this one sign of potential market bottoming, though we must still watch if the latest support level can hold up. For STI case, support would be around 3320 and Hang Seng short term support would be yesterday low of 26400

I must remind that the medium term signals are still WEAK, so not a time to trade in big positions on the long side. Even if I were to trade for the rebound, would nibble on small positions and set my CUT LOSS level TIGHT !!