0357 GMT [Dow Jones] S&P/ASX 200 down 3.5% at 3836.8, lowest since November 2004 as Nikkei falls more than 7.0% on Sony profit downgrade. Given the recent downside break from triangle pattern on S&P/ASX 200 (which represents bull trap) and the ease with which index broke May 2005 low at 3926.7, S&P/ASX 200 looks headed for next major support at 3506.1, according to Dow Jones technical analysis. BHP (BHP.AU) currently breaking January 2007 low at A$23.86, should slide to A$22.48 (Sep 2005 high) and A$22.00 (61.8% retracement of 1999-2008 rise). Don't rule out an overshoot to A$19.26 (61.8% of 1974-2008 rise). Such a fall would surely get S&P/ASX 200 down to 3500 and mark a major low point in BHP. (DWR)
RES Price at posting:
65.0¢ Sentiment: None Disclosure: Not Held
