Critical week for Straits Times Index

Last week, STI rebounded strongly after “fiscal cliff” concerns started to ease off. During the early week, STI was seen struggling to rebound as the resistance at 2980 level was preventing it from going higher. Concerns of US “fiscal cliff” with European economic issues were being discussed on the early week. However, strong rebound exhibited by the US market aided STI to break the resistance on Thursday. STI managed to maintain above this resistance and tried to head higher on Friday. Cautious trading volume was seen throughout the week as traders and investors took the cautious approach despite the strong rebound. STI closed at 2989 level with 43.65pts higher for the week. Last Friday, DJI closed bullishly with 172.79pts higher despite closing half day for Black Friday sales. Can STI maintain its bullishness this week? Or will it continue its downtrend movement?

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