Spore market (13 Jun 12)

Spore market: likely to open up this morning, taking cue from the positive close in the US overnight. Speculation that the Fed will stimulate the economy, and the ECB’s endorsement of a plan to guarantee bank deposits, lifted sentiment, more than offsetting the impact from an earlier Fitch downgrade of 18 Spanish banks. In Asia this morning, Kospi is +0.3%, and Nikkei is +0.5% at 8.07am. Technically, the STI rebound looks like it could run further, given that the 2800 resistance level will likely be broken today. The RSI and Stochastics rising from oversold levels is another positive sign. Next resistance level is the 200 MA at 2832. In the near term, see support at 2760 (bottom of the short term rising trend channel).