In last week, STI gain 76 points from the opening of 2716 and close higher at 2792. A white candle sticks with little lower shadow affirms that investors have no hesitant in buying the stocks higher.

Key Economics Data report:

On Friday, Standard & Poor’s has downgraded the credit ratings of nine euro zone countries. S&P lowered its long-term rating on Cyprus, Italy, Portugal and Spain by two notches, and cut its rating on Austria, France, Malta, Slovakia and Slovenia by one notch.

This move puts Italy on the same BBB+ level as Kazakhstan and pushes Portugal into junk status. S&P believes that there is at least a one-in-three chance that a country’s rating will be lowered in 2012 or 2013.

Technical Analysis on STI

STI index has managed to break out of the resistance at 2783 in this week which indicates on the bullishness of the market sentiment.

1) In ...