Daily Market Opinion for 01-Oct-2013

Daily Market Opinion for 01-Oct-2013

STI started the week bearishly as the market of was anxious of the possible US Government shutdown. Many feared that the shutdown will affect numerous market operations which will result in possible economic meltdown; hence, many preferred to exit the market to stay out. STI first opened with a gap down action which broke 3200 support level again. Further selling pressure sets in during the day to push STI lower to test 3180 support level. However, this support level fails to hold as European market opened in red. Hence, STI ended its day, below 3180 level, at 3167 level. 42.31pts was lost yesterday. Last night, DJI reacted by dropping 128.57pts down. Will STI continue to fall further today or Will STI attempt to go back above 3180 level?

The sharp bearish movement yesterday had formed a long black candle for STI. This candle …