Daily Markets Briefing: STI up 1.2%

Don't expect strong gains today.

According to OCBC, while Wall Street eked out further gains overnight, the US index futures have started to come off slightly; hence further strong gains in the local bourse looks unlikely, especially after the STI’s strong 1.2% rebound yesterday.

Here's more from OCBC:

Although the STI closed above the initial 2950 resistance, the recent strong run-up has nudged the daily RSI to just a shade below the overbought region.

As before, we think that the market would want to be sure that the index can sustain itself above 2950 before mounting an assault on the next key 3000 hurdle.

But any pullback could be relatively shallow, given that the medium-term technical picture has improved quite a bit; this as the 50-DMA has just cut up on the 100-DMA; overall volume also jumped 34% yesterday, while average value/unit climbed 13% to S$0.77.