Daily Markets Briefing: STI down 0.11%

Brace for a pullback today.

According to OCBC, while Wall Street ended modestly lower last night, we note that the US index futures have recovered most, if not, all of the overnight losses; the Nikkei is already trading 0.6% higher.

Although the STI suffered a late sell-down to end 0.1% lower, we note that the index managed to hold above the initial 2850 support; interestingly, the average value per unit traded also spiked to around S$1.13, almost doubling the usual average value, OCBC said.

Here’s more from OCBC:

And as long the index continues to hold above 2850, we may see some form of a technical rebound, given that the RSI just close to entering the oversold region.

But daily MACD continue to look quite negative, suggesting that investors may again opt to sell into strength if the STI fails to convincingly clear 2900.

Below 2850, we peg the next support at 2800.