Daily Markets Briefing: STI up 2.69%

Brace for a pullback today.

According to OCBC, further strength on Wall Street overnight should keep local sentiment upbeat, although we may see some caution seeping in, especially after the STI’s stronger-than-expected rally of nearly 2.7% yesterday.

Not only did the index take out the initial 2850 hurdle with ease, but it also ended at the high, and is now just a stone’s throw away from the next key 2900 resistance, OCBC said.

Here’s more from OCBC:

We also saw total value doubled to S$1.5b on the back of a 63% surge in total volume to 2.0b units traded, as winners overwhelmed losers 2.2 to 1.

However, the strong push has nudged the daily RSI up sharply and is just a shade below the overbought region; on the other hand, the daily MACD has finally cut up.

While the key 2900 hurdle looks to be in danger of being taken out, there is yet another one at 2919 (38.2% retracement of plunge from 3549 to 2529).