The STI is +0.1% at 3,150.90, rebounding slightly after yesterday’s 0.9% fall which was due to Moody’s Investors Service putting Spain’s Aa1 ratings on review for a possible downgrade, signalling a possible escalation of the euro-zone’s problems.

Volume is ultra-thin so far at 154 million shares worth $158 million, and the market breadth is flattish, suggesting trading interest has waned further as we edge closer to the year-end.

CIMB says the index “is likely to continue to drift lower as the right shoulder (of a potential head and shoulders pattern) continues to take form. A test of the neckline at 3,122 is the near-term destination.”

It adds, a fall below this key support could suggest the 2-year high of 3,313 is “a significant top” and would also see prices drop about 200 points to 2,920. Xinren (MN5.SG) is the most active stock and is +5.5% at $0.480. SIA (C6L.SG) is off 1.0% at $15.30 after reporting an on-year and sequential decline in its November load factor.