Daily Market Opinion for 07-Jan-2015

Yet again, STI was seen dropping strongly yesterday. Impacted by the drop of oil prices and concerns of Euro situation, it seems that the market have a lot of reasons for the drop in prices yesterday. The day started with a strong gap down action which broke the strong support at 3300 easily. The gap down opening was lead by the offshore sector as oil price dropped to a new low on Monday night. There were no attempts to rebound after opening. Downward was the only way till it hit a low of 3272 level before some short covering actions start to happen. Trading volume spiked up yesterday; hinting panic selling. At closing hours, STI managed to close at 3281.95 level with 46.33pts down. Last night, DJI continued to drop lower with 130.01pts down. How will STI behave today? Will it drop ...