Daily Markets Briefing: STI up 0.2%

But expect a pullback today.

According to OCBC, the continued weakness on Wall Street overnight could start weighing on local sentiment and spark profit-taking, especially after yesterday’s 0.2% unconvincing rebound; this as the gains came amid lower volume (market value also fell below S$1b; losers outpaced gainers).

Here's more from OCBC:

Although the daily MACD indicator has just cut up, the stochastic indicator continues to fall out of the overbought region after a recent cut down.

As such, we think that the market remains largely unsure of the index’s near-term direction (but may be more inclined to the downside).

Having said that, we believe that a filling of the minor gap at 3252-3258 could provide a near-term base for the index to inch higher thereafter.

· On the upside, we peg the initial cap at 3375 (recent peaks), ahead of 3387 (2014 intraday high)