Daily Markets Briefing: STI up 1.75%

Brace for a pullback today.

According to OCBC, although Wall Street ended with modest gains Friday, US index futures are coming off in after-hours trading, suggesting that further near-term upside may be limited.

Likewise for the STI, the recent strong rebound looks ripe for a pullback, especially if the index fails to convincingly sustain above the key 3000 level (it ended just below that level despite hitting an intraday high of 3011.63 last Friday), OCBC said.

Here’s more from OCBC:

Still, given that the daily technical indicators continue to look positive, any near-term pullback is likely to be shallow and found find pretty decent support around 2900.

Above 3000, the next hurdle is at 3050.

Meanwhile, REITs will kick off the earnings season this week, followed by the Keppel group of companies next week.