Daily Markets Briefing: STI up 1.17%

Brace for a pullback today.

According to OCBC, the pullback on Wall Street overnight is likely to result in similar profit-taking in the local bourse today, especially ahead of the weekend; the Nikkei is down 0.4% in early trade.

Although the STI rebounded 1.2% yesterday, overall volume was relatively light (focus was still mainly on the penny stocks); the index also could not quite conquer the initial 2931 resistance (23.6% retracement of fall from 3549 to 2740), OCBC said.

Here’s more from OCBC:

And to trigger a parabolic buy signal, the index may need to clear 2988, but that looks like a long shot from here.

As such, we may still see the index easing back towards 2800 over the medium term, although we can expect some modest support around 2900.

Above 2931, the next hurdle is at 2950, and then 3000.