Daily Markets Briefing: STI up 1.5%

A pullback is on the cards today.

According to OCBC, the sharp pullback on Wall Street overnight is likely to spark profit-taking in the local bourse today, especially after the STI’s 1.5% jump yesterday (also +1.2% in the previous session); Nikkei has fallen 1.9% in early trade.

Here's more from OCBC:

Although the daily technical indicators are more positive, the overall sentiment continues to remain quite cautious; hence most will also want to square their positions ahead of the Polling Day holiday tomorrow.

As before, the index’s ability to stay above the immediate 2900 resistance-turned-support level will be closely watched.

A break could see a steady decline back towards 2800.

We peg the immediate hurdle at 2950; but 3000 remains the main hurdle to clear.