In last week, STI lost 84 points from the opening of 2730 and close lower at 2644. A black candle sticks with little upper shadow indicates that investors have no hesitant in selling the stocks lower.

Key Economics Data report:

There are poor government debt auctions in this week. On Wednesday for Germany, where demand was very weak and on Friday for Italy, which saw yields hitting record euro lifetime highs. All these reactions demonstrate that investors are losing faith in political leaders’ ability to rein in bulging deficits and are punishing the whole area.

Economists at Goldman Sachs expect the euro zone to fall into recession in the fourth quarter, on the back of “a negative confidence shock and tighten fiscal policy.

Technical Analysis on STI

STI index has broke the critical support zone at 2679/2649 and lost a total of 3.2% in this week.

1) In weekly chart, ...