Daily Market Opinion for 06-Jan-2015

The first full week of the year started with a strong bearish note. Straits Times Index fell strongly with 42.31pts down. The downward pressure was first lead by the banks and followed by the offshore sector. The market participants made used of the bullish opportunity to get rid of the already high banking sector which caused a sharp fall in the price during the day. Furthermore, falling oil price triggered another selloff in the offshore sector which caused more alarming selling pressure. Therefore, this leads STI to drop from a high of 3369 level to a low of 3319 level; ending at 3328.28 level. These concerns also caused DJI to crash 331.34pts last night. Has my bullish expectation ended after yesterday’s strong bearish movement? Will STI be able to find its support and attempt to rebound?

STI failed to hold above 3350 …