Daily Markets Briefing: STI up 0.81%

Brace for a pullback today.

According to OCBC, the STI is likely due for a pullback after posting gains for the past five sessions, especially ahead of the weekend and after the more muted close on Wall Street overnight.

As expected, while the index took out the initial 2900 hurdle with relative ease, it did not quite manage to sustain above the next key resistance at 2919 (38.2% retracement of the plunge from 3549 to 2529), according to OCBC.

Here’s more from OCBC:

And if it fails again to convincingly hold above 2919, the index could pull back to re-test the 2900 resistance-turned-support first; a failure to hold above 2900 could see it easing to 2850.

Interestingly, while overall volume tumbled 33% to 1.3b units traded, average value/unit jumped further from S$0.72 in the previous session to hit S$1.00, as the banks were among the big gainers yesterday.