Daily Markets Briefing: STI up 0.8%

Expect a pullback today.

According to OCBC, although Wall Street ended slightly up last night, the increased volatility could impart some caution to the local bourse as well, especially ahead of the key ECB meeting and also results from KepCorp tomorrow.

Here's more from OCBC:

Although the STI ended 0.8% higher yesterday, volume was relatively light; daily indicators are also not conclusive of a pickup in bullish momentum.

As such, we could see potential profit-taking emerging closer to the recent 3370—3375 peaks. On the downside, we see immediate support around 3318 (30-DMA, 50-DMA), ahead of 3300.

However, it may be worth noting that the 30-DMA is just 1-point above the 50-DMA, and could generate a negative cross-over should the index head lower over the next few sessions.