Straits Times Index might be in consolidation mode this week.

Straits Times Index might be in consolidation mode this week.

Last week was a week of retracement for STI as the market started to digest the impact of delaying the tapering. The market brought out another set of worries this time round; delaying of tapering might result in deeper deficit in government spending. Many were worried about the impact and chose to flee from the market as sold into strength. Hence, STI started the week with a gap down action which STI failed to rebound beyond it for the next 2 days. On Thursday, STI broke 3200 level and attempted to test its next support at 3180 level which it rebounded off after testing it intraday. This intraday rebound had attracted bargain hunters to enter the market which helped STI to recover back above 3200 level again. For the week, STI was seen dropping 27.35pts and ended at 3210 …