Daily Market Opinion for 04-Feb-2014

The year of Horse started with a gallop downwards yesterday. Mr Bear seems to be riding on the Horse yesterday as the sentiment got more fearful after the Lunar New Year break. With bearish guidance from the US market, STI opened with a gap down and it started to face selling pressure. Due to lack of directions from the Hong Kong market, selling pressure was being forced onto Singapore market which caused a slide near to the noontime. 3000 psychological support level was then broken which triggered further selling sentiment in the market. A low of 2989 level was hit before it closes at 2990.95 level. STI shed 36.27pts yesterday. Last night, DJI collapsed further with 326.05pts down. Will STI take the lead from DJI to slide further today? How low will STI go this time round?

With STI breaking the key ...