Daily Market Opinion for 17-Jan-2013

STI experienced a strong tussle between the bulls and bears yesterday and eventually managed to close higher. STI started the day with a flat opening and sellers were quick to exit the market which forces selling pressure into the early market hours. When the price was depressed to as low as 3160 level, bargain hunters quickly made use of the opportunity to buy on bargains. This supported the market and created a strong rebound as the selling pressure started to weaken. STI soon recovered back above 3180 support level and even went beyond the opening price. Eventually, STI managed to end at 3208 level with 12.43pts despite regional market ending in the negative zone. Last night, DJI failed to impress and ended with 23.66pts lower. Will this rebound be sustainable? Will STI continue to test this support at 3180 again?

STI had form ...