Daily Market Opinion for 27-Sep-2012

Yesterday, STI broke the indecisiveness streak and decided to trade on the bearish side yesterday. STI opened with a strong gap down in reaction to DJI previous night’s closing while weak manufacturing numbers were also reported by Singapore yesterday. This gap down opening caused STI to immediately test the 3040 support level and STI is now trading in the gap support range of 3033 – 3057 levels. There were some buying activities during the early trading session but it came to a halt during the lunch hours. STI remain stagnant for the rest of the day until the closing hours. Some selling pressure was seen before closing which caused STI to close at 3046 level with 20.45pts lower for the day. Last night, DJI close slightly lower with 44.04pts down. Will this strong gap down trigger more selling pressure ahead? Or is STI …