Daily Market Opinion for 08-Oct-2014

STI failed to trade higher yesterday despite positive news from both US and HK. STI started the day with a bullish gap up opening. It attempted to trade higher by reaching a high of 3261 level. But market participants were more eager to exit the market, causing STI to slide lower for the rest of the day. Even though HSI was seen trading in the positive region, STI did not manage to gain any positive vibes from it. Instead, further selling pressure was seen pushing STI to as low as 3237 level. STI was able to recover a little before closing and hence, it closed at 3243.99 level with 9.25pts down. Last night, DJI traded lower by 272.52pts with concerns on interest rate hikes. Will STI continue to trade lower today? Or will it attempt to rebound?

STI faced the gap resistance ...