In last week, STI decline a solid 90 points from the opening of 2789 and close lower at 2699. A black candle sticks with lower shadow affirms that STI remain barely supported at the 2680 region.

Key Economics Data report:

Stock markets was hammered in the past week as fears heightened on a possible double-dip recession. The US and European leaders failed to demonstrate that they were on a convincing path to control their sovereign debt crisis.

In addition, Fed reported on Tuesday that the risks to the economy are “significant” and it noted “strains in global financial markets” could be a catalyst. The Fed’s statement came the same day as a preliminary China manufacturing report showed moderating growth.

The Fed also announced its “Operation Twist,” which it plans to trade out of $400 billion shorter duration Treasury securities and into the same amount in 6- to 30-year bonds.

Technical ...