Daily Market Opinion for 5-Dec-2012

Yesterday, STI inched lower in reaction to DJI’s weak performance on the previous night. STI opened with a slight gap down while buyers tried to sustain the bullishness throughout the morning session. Sellers continues to place pressure during the day causing STI to wither to as low as 3052 before rebound back to its opening level. Tussle between the bulls and bears were seen throughout the day as either party were unwilling to give in. Eventually, STI managed to close with only 3.62pts down, at 3062 level. Last night, DJI closed slightly down with 13.82pts lower. Has STI completed its retracement or more downside room is to be expected today?

STI ended with a white hammer liked candle yesterday. This candle tested the gap support between 3048 – 3062 levels and its lower shadow formation shows that STI is being supported by it. ...