Daily Market Opinion for 15-Feb-2013

Yesterday, STI did not continue its bullish momentum as it closed down despite strong opening from HSI. The previous day’s strength could have already been adjusted for the positive news and hence, lacking of further catalyst to push STI higher yesterday. The day started with a slight gap down with attempts to rebound during the early trading session. However, profit takers were making use of the opportunity to sell into strength which causes STI to slide further before market closing. Trading volume for index components were seen to be weak but high trading volume was being contributed by the penny stocks. Last night, DJI closed flat with merely 9.52pts lower. Has STI lost its expected bullish momentum? Or is STI merely attempting to close its gap support before it continues to trade higher again?

STI formed a bearish candle yesterday which can be seen ...