In last week, STI fell 104 points from the opening of 2883 and close lower at 2779. A long black candle sticks with little lower shadow affirms that investors panic sell on poor economics ahead.

Key Economics Data report:

Europe will keep traders alert on financial markets in the week ahead as investors size up Greece’s commitment to the euro zone and watch for other headlines on the debt crisis.

In the past week, German Chancellor Angela Merkel and newly elected French President Francois Hollande both said Greece should stay in the euro zone. Greece’s failure to form a ruling coalition after its May 6 election has now led it to a second election in June.

Technical Analysis on STI

STI index broke the critical support at 2792 in the past week and this is a very bearish signal.

1) In weekly chart, a long black candle sticks with short lower ...