Daily Market Opinion for 2-Nov-2012

STI started the month bearishly despite strong data from the China economy yesterday. STI opened with a slight gap down in reaction to the weak DJI’s overnight’s closing. Sellers flooded the market with sell orders which pushed STI to as low as 3016 level before bargain hunters came into the market during the morning trading session. Strong bullish performance by HSI did not encourage more buyers to push STI into the positive zone. The sellers remained stubborn and tried to prevent STI from climbing above 3030 level during the mid of the day. The tussles eventually ended with 11.76pts lower at 3026 level. Last night DJI rebounded strongly with 127.18pts higher. This could a good reason for STI to start a rebound and trade above 3030 level again. Can STI hold this support level today or more bearish indication is about to come?

...