Daily Market Opinion for 24-Aug-2012

STI attempted to rebound yesterday after a strong bearish movement on the previous day. The rebound was sparked by speculations that US and China government will be planning to release QE3 to help their slowing economy. Hence, STI started the day with a slight gap up opening. For the whole morning session, STI continued its rebound and reached as high as 3071 level which broke the gap resistance between 3053 – 3060 levels. However, the buying effort was soon to subside as bearish traders came into the market to make sure the gap resistance level holds. This caused STI to retrace within the day and close at 3056 level. Eventually, STI achieve only 6.9pts higher for the day. Last night, DJI eased a further of 115.30pts. Will STI be able to retain its bullishness? Or is further downside is to be expected for …