Daily Markets Briefing: STI up 1.2%

Expect more good news today.

According to OCBC, the good showing on Wall Street last Friday night could continue to keep local sentiment buoyant, although further gains may slow, especially after the STI’s strong 1.2% surge on Friday.

Here's more from OCBC:

And with the index just inches away from the next 3277 hurdle (61.8% retracement of the recent tumble from 3356 to 3149), a convincing break could mean the start of a new uptrend.

Still, it remains to be seen if the STI can clear and sustain above the 3300 psychological hurdle as we head into the year-end holidays; results season would also draw to a close come 15 Nov.

On the downside, we peg the initial support at 3253 (50% retracement of the 3356 to 3149 slide), ahead of the key 3221 level (38.2% retracement of 2953-3387 rally).