Daily Markets Briefing: STI down 0.2%

Expect another decline today.

According to OCBC, despite better US job numbers, the spectre of rising interest rates could keep local sentiment cautious in the near term – note that Wall Street was also down Friday on the back of weaker crude prices.

Here's more from OCBC:

As such, we could continue to see more profit-taking in the local bourse, especially after the recent strong gains – daily stochastic indicator has started to fall out of the overbought region after a sharp cut down last week.

For now, the index could slip further to fill the minor gap at 3252-3258 (but note that there is a parabolic sell signal around 3267), ahead of a stronger support at 3218 (uptrend line since early Feb 2014, also rising 0.9 point/day).

On the upside, we peg the initial cap at 3375 (recent peaks), ahead of 3387 (2014 intraday high).