Daily Markets Briefing: STI down 0.43%

Expect muted gains today.

According to OCBC, fresh weakness on Wall Street overnight and the muted showing from the two local banks could weigh further on local sentiment, and see more investors heading for the sidelines ahead of the long weekend.

In any case, the STI’s recent price action has turned increasingly more bearish; not only did the index’s early rebound fizzled out at the key 2900 hurdle yesterday as expected, but it also extended its losing streak for the 5th session with 0.4% loss, OCBC said.

Here’s more from OCBC:

We also note that the STI has fallen below the short-term uptrend line; and the inability to regain the 2874 support-turned-resistance could see it slip further towards 2843 or even 2800, given that the RSI is still some way from the oversold region.

Above 2874, we peg the key hurdle at 2900.