Daily Market Opinion for 17-Oct-2014

It was a disastrous day for STI yesterday as market participants reacted to the bearish outcome of DJI on the previous night. Many feared the weakening world economy and decided to bail out from the market.  The spread of Ebola have heightened and this sends fresh concerns to the market too. Therefore, STI opened with a gap down, testing 3180 support level. This support level failed to hold and caused further selling pressure into the market. There was lack of rebound during the day as STI continues to head lower gradually. Eventually, STI ended at 3154.21 level with 44.51pts down for the day. Last night, DJI slowed its decline by closing 24.50pts down. Will STI be able to halt its decline today? How low will it go if it does not stop the decline today?

STI’s bearish streaks have not come ...