STI might have confirmed its downtrend formation.

Last week, the market started off with cautious start and market participants were undecided of the direction due to the upcoming Fed chief’s speech. Speculations were on the possible QE3 decision which made the market stayed above 3040 support during the early week. However, numerous reports weighted that the QE3 will be unlikely to be implemented shook the market on Thursday. STI gapped down strongly on Thursday and was quick to break the key support at 3040 level. STI hit as low as 3004 level before it started to rebound on Friday due to bargain hunting. STI eventually closed at 3025 level with 25.03pts lower for the week. Last Friday night, the Fed chief did not implement the QE3 package but did not rule out the possibilities of introducing it. The US market reacted slightly positively to it. DJI closed on Friday ...