Singapore stocks may slip after Wall Street’s mixed performance overnight, says Dow Jones.

With Moody’s downgrading Greece’s debt rating to junk-grade status, investors may again take Europe’s debt problem as signal to sell.

STI may find immediate support at 2800 after closing above that level yesterday for first time in 6 sessions, +0.8% at 2,818.07; resistance tipped at 2,843, halfway mark between year-to-date high of 3,037, low of 2,648.

“The recent rally attempt by the STI since 25th May lacked volume conviction,” says Westcomb, “in our view, the recent rally could simply mean the bear taking time to catch its breath.”

Stocks with significant exposure to Europe, such as Neptune Orient Lines (N03.SG), Singapore Airlines (C6L.SG) may lead decline among STI components; NOL ends +2.1% at $1.94, SIA +0.7% at $14.82.