Daily Market Opinion for 06-Feb-2013

STI started the second day of the week with a strong retracement as profit takers loomed the market yesterday. In reaction to the weak DJI closing on last Friday, STI opened with a gap down at 3085 level. There are no signs of recovery to close the gap in the morning trading session as sellers continues to push the price lower towards 3260 support level. Before market closing, positive European market helped STI to recover from its low of 3261 level. This helped STI to reduce its losses for the day by ending its day at 3272 level. For the day, STI was down by 24.71pts. Last night, DJI managed to recover part of its losses with 99.22pts up. Can STI behave like DJI last night and recover? Or will STI continues to trade lower till its support level is being tested?

STI ...