Daily Market Opinion for 8-May-2014

It was another day of red for STI as it continues to find a proper foothold for a rebound. 20ma support line failed to hold STI yesterday as it opened with a slight gap down. Selling pressure was seen creeping in after hitting a high of 3241 as STI started to react to bearish movement in HSI. Selling pressure continued for the rest of the day which made STI to hit as low as 3226 level before an intraday rebound happens. Short covering was seen before closing hour and this helped STI to recover some of its losses for the day. Eventually, STI is able to close at 3236.43 level with 9.13pts down for the day. Last night, DJI closed with 117.52pts up. Will STI be able to sustain its current support level? Or will the support breaks and trigger further selling ...