In last week, STI falls 18 points from the opening of 2843 and close lower at 2825. A white candle sticks with long lower shadow affirms on the weakness of the rally as investors sell on uncertainty ahead.

Key Economics Data report:

The lack of a clear direction to resolve the crisis in Europe has been driving up interest rates in the European periphery and pressuring shares of European banks for fear on Greece was close to default.

Investors will also be watching for any stream of warnings and commentary from corporate America, as companies react to how the global slowdown is impacting their third quarter earnings.

Technical Analysis on STI

STI index has re-test the support at 2820 in this week but continue to have issues in holding above this level.

1) In weekly chart, a white candle sticks with long lower shadow affirms investors remains skeptical of the situation …