Daily Market Opinion for 17-Dec-2014

STI performed a sharpest drop in the year yesterday. This is in reaction to the recent falling oil prices but speculations are also turning towards the possibilities of US government to withdraw their stimulus program. This uncertainty and fears had created panic selling pressure yesterday with a gap down opening; breaking 3280 support level easily. There were attempts to recover the support level but it only managed to hit a high of 3279. Hence, sellers were induced to panic state and created strong selling pressure. Strong support at 3260 level also cracked easily which caused more positions to be exited. STI then hit a low of 3212 level before it closes with a slight rebound. STI closed at 3215.09 level with 79.05pts down. Last night, DJI was seen going down by 111.97pts. Will STI continue to drop drastically today? Or will it …