Daily Market Opinion for 19-Mar-2013

The week started with a bang as STI gapped down strongly after news of Cyprus bailout being announced. This economic news sent shivers to the market as it reminded that the whole European economic situations are not out of the woods yet. This sent STI to open sharply lower at 3260 level which tested the support immediately. This support level was being broken many times during the day despite numerous attempts to rebound above it. 3260 level seems to have turned into a resistance level instead as STI was unable to sustain above it. Eventually, the market decides to close below 3260 level; ending at 3256 level with 29.58pts lower. Last night, DJI also felt the bearish pressure and ended up 62.05pts lower. Will STI continue its downward movement today? Or will STI attempt to stay above 3260 support level?

STI closed with ...