In last week, STI falls 36 points from the opening of 2825 and close lower at 2789. A white candle sticks with long lower shadow affirms that STI remain well supported at the 2700 region.

Key Economics Data report:

Fed will be expected to plan on a new easing program as the European debt crisis continues to boil.

Fed will likely to announce a new program — dubbed “operation twist” — at the end of its two-day meeting Wednesday.

“Twist” is different from the “QE2″ quantitative easing program which involved the purchase of $600 billion in Treasury securities. Investors this program to raise the duration of the securities the Fed holds and not the amount. The program could reduce long-term interest rates as the Fed buys more securities in the middle and longer end of the yield curve.

Technical Analysis on STI

STI index has re-test the support at 2720 ...