Daily Markets Briefing: STI down 0.4%

Expect limited gains today.

According to OCBC, with Wall Street shut for Labour Day last night, the STI could continue to drift sideways in light volume again today; Nikkei is up 0.3% but off early highs.

Here's more from OCBC:

The index, down 0.4%, was stuck in a 30-point range with less than S$900m traded yesterday; but this comes as no surprise with the start of the week-long school holiday and also the shortened week due to Polling Day this Friday. 

Although the daily RSI has just fallen into the oversold region, the medium-term outlook remains somewhat bearish; hence we could continue to see a steady decline towards 2800.

On the upside, we peg 2900 as the initial resistance, while 3000 remains the main hurdle to clear.