Daily Market Opinion for 16-May-2013

Daily Market Opinion for 16-May-2013

STI continues to trade in a mixed session yesterday despite being able to inch higher. The morning started with a gap up opening which STI attempted to sustain in the early hours. However, sellers were being spotted selling into strength which prevented STI to go higher than 3451 level. Sellers dominated the market during the afternoon period which made STI hit as low as 3435 level before buyers starts to set in to support the support level of 3430. Eventually, STI closed lower than its opening and ended at 3441 level. STI only managed to gain 8.77pts yesterday. Last night, DJI gained 60.44pts. Will STI continue to draw strength from DJI bullish closing? Will the bullish strength fizzle off again before market closing?

STI ended its days with a black candle which is the 3rd consecutive day that it closes this way. …