STI Report @ 19/Feb

On 18/Feb, the Federal Reserve surprised the financial markets by lifting its discount, or primary credit rate, to 0.75% from 0.5% effective on Friday. The Fed said the discount rate hike was the culmination of several recent steps to phase out its emergency lending programs put in place during the financial crisis.

This action has caused a big sell off for Asian market on Fri. HSI drop 528 pts (-2.6%) to 19894 while STI drop to the low of 2727 and managed to re-bound back @ 4pm after observing that Europe market did not have much impact. Finally STI closed @ 2757 (-0.44%) on 19/Feb.

We would need to see tonight US market reaction towards Fed reaction before deciding on the next step.

Immediate Resistance: 2808

Immediate Support: 2735

Next Support: 2700