Daily Market Opinion for 12-Dec-2012

STI struggled to climb higher for the second consecutive days. Again, STI opened with a slight gap up action and attempted to trade higher during the early session. STI reached as high as 3138 level and again was resisted by the 3140 resistance level. Sellers started to creep in to sell on strength which forces STI retrace in the intraday. There was a tussle between the bulls and the bears in the mid day trading session but the bulls gave in. Before the market closes, further selling was seen which caused STI to close lower than its opening. STI ended at 3118 level with only a mere 3.99pts higher. Last night, DJI managed to end bullishly with 78.56pts higher. Is such market action signalling a retracement to come? Or will STI continue to test the 3140 resistance level today? 

STI formed a ...