Daily Market Opinion for 25-Oct-2012

Daily Market Opinion for 25-Oct-2012

STI continues to be trading flat yesterday with attempts to break the resistance from both the 20 & 50ma line. STI opened with a gap down but it was quick to rebound during the early hours to hit as high as 3063 level, entering the positive range, before seller starts to come into the market again. Most of the selling pressure sets in after lunch hours as the market reacts in anticipation of weak European market opening. This selling pressure pushes STI back into the negative range causing STI to close 6.2pts lower. STI ended at 3044 level. Last night, DJI continues to close lower by 25.19pts despite its attempts to rebound within the day. With the major market retracing, will STI be able to sustain its current level? Or will STI be attempting to break the resistance at 3063 level again?