STI In Bearish Mode

STI closed below its 50 day moving average on Friday. The market has been trying to stay on the recovery path but Friday’s bearish move proved to be too strong for the market to resist. The 50 day moving average closed below it’s 50 day moving average for this first time since late Oct when the market made its recovery move.

The stock market is being pressured by fears in Europe. The Spanish 10 year government bond yield hit a high of 6.75% and France is trying to hold on to its AAA credit rating. Germany is now seen as the only safe haven in the eurozone.

The phase chart is painting a bearish picture. The next support level is near 2700 level.