Daily Market Opinion for 14-Oct-2014

STI started the week with a strong bearish start. Many feared the world economy situation and decided to flee the market. 3220 support level was being broken with a gap down opening which STI tried hard to go above it. However, it only managed to gain a high of 3217 level before selling pressure starts to set in again. Sellers dominated the market throughout the day, causing STI to hit as low as 3194 level. Before closing, it managed to stage a slight rebound and close at 3202.15 level. 21.72pts was lost yesterday. Last night, DJI was down by 223.03pts. Will STI be able to retain its support? How low can it continue to go?

The critical support at 3220 level was broken easily yesterday. This indicates that STI might be going for a longer term downtrend as the important 200ma line ...