Daily Markets Briefing: STI up 0.24%

Expect more gains today.

According to OCBC, although the STI extended its recovery with a 0.2% higher close yesterday, we are more likely to see profit-taking kick in today, given the muted Wall Street close overnight as well as the start of the school holidays from next Monday.

Here's more from OCBC:

In addition, the index’s recent price action may have triggered a potential bearish reversal signal; this could send the STI back towards the key 100-DMA support (currently hovering around 2749).

As before, a convincing break of this support is likely to send the index back towards the next key support at 2700; on the other hand, 2800 remains the key hurdle.

Meanwhile, we are already seeing a dip in overall market volume (down 16% at 1.6b units); but average value/unit rose 18% to S$0.52, and we could see it rising up further if the profit-taking spreads to the blue chips, especially after the recent rebound.