Daily Market Opinion for 23-Aug-2012

Yesterday, STI opens with a strong gap down after weak closing by DJI on the previous night. The gap down opening caused numerous traders to sell their positions as many feared further selling actions are yet to be seen. 3040 recent low level was tested and even broken during the first half of the day; reaching as low as 3032 level before bargain hunters set in again. Weak opening at HSI had elevated the bearishness during the morning session. Bargain hunters supported the market before the lunch hours which helped STI to climb above 3040 level again. Flat opening by the European market have lifted STI back to as high as 3053 level before ending at 3049 level. This intraday volatility has caused STI to end with 16.3pts lower. Last night, DJI struggled to rebound and ended with 30.82 pts lower. Will the …