Daily Market Opinion for 31-Aug-2012

After nearly 2 weeks of indecisiveness, STI have at last managed to trade with decisiveness yesterday. 3040 support level was broken immediately with a gap down as the US reported a gradual growth in their economy; Market participants whom are hoping for a QE3 decision tonight but the Fed chairman will unlikely to happen after this report. STI opened at 3031 level and it opened the flood gate of sellers. Many were eager to sell in the early trading session and selling pressure starts to subside during lunch hours. There was slight rebound after lunch but the buyers were cautious and did not help STI to recover. Eventually, STI closed at 3011 level with 29.75pts lower. Last night, DJI was down 106.77pts after their economic report. Since 3040 key support level is broken, where will STI’s next support be? Will Fed’s chairman speech ...