In last week, STI lost 61 points from the opening of 2791 and close lower at 2730. A black candle sticks with little upper shadow indicates that investors have no hesitant in selling the stocks lower.

Key Economics Data report:

On Friday, a high-profile meeting to trim stubborn U.S. budget deficits appeared near collapse as Democrats rejected a scaled-back proposal from Republicans that contained few tax increases.

However unlike budget standoffs in April and August, failure would not lead to a government shutdown or a sovereign debt default.

Technical Analysis on STI

STI index has broke the minor support at 2778 in this week as investors sell on news of further Europe debts woes.

1) In weekly chart, a black candle sticks with little upper shadow affirms that investors are cautious and prefer to take profit off the table.

2) The weekly trading volume falls as STI trend slightly downwards due ...