Daily Market Opinion for 21-June-2013

Daily Market Opinion for 21-June-2013

STI got hit hard yesterday as the Fed decision and weak China economic data send jitters to the market. STI opened with a strong gap down yesterday in reaction to the bearish DJI’s overnight closing. This immediately broke the 200ma line which caused more sellers to enter the market. There was no sight of rebound during the intraday as buyers were avoiding the market; this send STI to trade lower every momentum during the day. It was one of the most bearish days in this year. Eventually, STI closed with a whopping 80.53pts down and ended at 3133 level. Last night, DJI crashed lower with a stronger magnitude of 353.87pts. Will STI also crash today? How low can STI go?

STI had confirmed its lower high formation yesterday after breaking its 200ma line at 2190 level. It had created a gap resistance of …