In last week, STI drop a solid 80 points from the opening of 3180 and close lower at 3100. A long black candle sticks with lower shadow affirms that investors sold off the stocks in fear.

Key Economics Data report:

In the coming week, one of the important data will be the US weekly jobless claims on Thursday.

Severe drop in oil and gold prices may continue onto next week which will spurred selling off in oil and commodities related stocks. However the drop in energy prices bodes well for stocks over the long haul.

Technical Analysis on STI

STI index has broke the critical support at 3120 though the selling pressure is still contained due to majority investors still sidelined.

1) In weekly charts, a long black candle stick with lower shadow indicates that investors have no hesitant in selling down the stocks.

2) The weekly trading volume falls due to ...