Daily Market Opinion for 7-Nov-2012

STI failed to rebound and instead retraced below 3030 support level again yesterday. The gap down opening have already marked STI to be below its key support level for the day. Attempts to rebound above its opening were unfruitful during the day as sellers were putting pressure on the attempts. Intraday trading was also lacking of activities during day causing STI to stay stagnant during the mid day session. Positive European market opening failed to stir up buying activities but instead sellers pushed prices to a much lower level. Eventually, STI closed with 12.4pts lower, at 3019 level. Plagued with cautiousness for the US election, will STI be able to recover its lost grounds today?

STI closed with a black candle with upper shadow yesterday. This shows that the expected rebound towards its 20 & 50ma line at 3050 level failed to happen. ...