Daily Market Opinion for 26-Feb-2013

STI encountered a cautious day yesterday as market participants are waiting for the Singapore budget announcement and Italian election. There was initial bullish reaction in STI during the opening hours but it was quick to tamper off. Sellers made use of the opportunity to offload their positions as they deemed that the concerns implied downside risk. The gains made during the gap up opening were slowly returned throughout the day which made STI to close with merely 0.63pts gains. STI ended at 3288 level. Last night, DJI reacted badly to the Italian election concerns and dropped 216.40pts lower. Will STI follow the bearishness encountered by DJI last night? Can STI sustain its uptrend momentum currently?

A black candle was formed by STI yesterday. This candle states that STI is experiencing intraday bearishness and is unable to gain bullish momentum. Despite such bearishness, STI ...