Daily Markets Briefing: STI up 0.4%

Expect a pullback today.

According to OCBC, the pullback on Wall Street overnight could also result in a weaker opening for the local bourse this morning, especially after the recent run of gains – the STI was up 0.4% yesterday, also up 1.5% since bottoming around 3302.

Here's more from OCBC:

As expected, the index tested but failed to close above the immediate hurdle around 3357 yesterday; as such, we could see it pulling back towards 3302, but we believe it should stabilize around there, given that the daily technical indicators remain relatively positive.

Below 3302 (61.8% retracement of previous rally from 3149 to 3549), the next support will be the recent 3291 low and then 3267.

Above 3357, we peg the next resistance at 3389 (38.2% retracement of the recent fall from 3549 to 3291).