Daily Market Opinion for 14-June-2013

STI experienced another day of drop yesterday as concerns on the adjustments US and Japan monetary policies. STI opened with a gap down as it reacted to DJI’s previous nights closing. This gap down action broke the immediate support level of 3150 and it opened the flood gate for more sellers to enter the market. There was panic selling in the morning session which caused STI to trade till as low as 3094 level before bargain hunters start to enter the market. Before closing hours, STI started to rebound firmly and it seems that short covering is in play. Eventually, STI rebounded back close to its opening levels. STI ended at 3130 level with 22.79pts down. Last night, DJI rebounded firmly with 180.85pts higher. Will STI be able to stage a rebound today? Or will STI attempt to drop lower?

The support level ...