Daily Markets Briefing: STI down 0.39%

Expect muted gains today.

According to OCBC, Wall Street staged a pretty decent rebound overnight after the Fed held rates unchanged; but US index futures have pared gains somewhat, suggesting that the overall tone is likely to remain cautious.

·As expected, the STI eased further yesterday, falling 0.4% to close below the key 3049 level (38.2% retracement of the fall from 3549 to 2740), OCBC said. 

Here's more from OCBC:

While the STI is likely to make an attempt to regain this level, a lot hinges on the ability of the index to sustain itself above that.

If it does not do so, we are still likely to see a deeper correction to 3000 or even 2900.

Above 3049, we note of a minor hurdle at 3065 before the key 3100 level.