Daily Market Opinion for 21-Sep-2012

Yesterday, STI gave up its previous day’s gain and ended lower. This could be a continuation of the expected retracement that was deemed to happen after testing 3080 resistance level. STI opened slightly lower despite DJI’s positive closing on the previous night. Selling pressure was seen throughout the day which gradually pushed STI lower which broke the past 2 day’s lower. Negative European market’s opening caused more selling pressure to the market before closing. Eventually, STI closed at 3062 level with 13.02pts lower. Last night, DJI refused to retrace and closed with 18.97pts higher. Will STI continue to retrace today? Or will STI follow DJI to rebound?

STI formed a black candle yesterday which indicates the continuation of retracement towards the gap support between 3033 – 3057 levels. This bearish movement have caused the Histogram to trigger bearish signal which resulted in ...