Daily Markets Briefing: STI up 0.98%

Expect limited gains today.

According to OCBC, a Wall Street rally ran out of steam, limping to the close of Thursday’s session as oil futures relinquish early gains ahead of a highly anticipated Friday employment report.

Here's more from OCBC:

Although the STI managed to regain the key 2900 level yesterday after closing 1% higher at 2906, its ability to sustain above this level is likely to be challenged by the muted overnight showing on Wall Street, the usual weekend profit-taking, and also the lack of cues from China (markets still shut today).

No doubt that the daily technical indicators are turning a tad more positive; but concerns over the US interest rates, the slowing economy in China are still likely to weigh on sentiment.

Hence, we still see 3000 to be key hurdle to overcome. And on the downside, we peg the next suppport at 2860; but note that the index could trigger a parabolic sell signal if it dips below 2820.