Daily Markets Briefing: STI down 0.6%

Expect more losses today.

According to OCBC, renewed weakness on Wall Street overnight could weigh further on the already fragile local sentiment, sending the STI lower towards the key 3000 psychological support.

Here's more from OCBC:

Although the daily RSI already shows the market as oversold, the MACD continues to look very negative; this is not helped by the recent spate of dismal economic numbers out of Singapore.

Hence we could continue to see investors using any technical rebound to unwind stale longs, especially if the index fails to retake the 3100 level.

Note that the STI has already fallen below the immediate 3053 support, which will now turn into a resistance.

Below 3000, we peg the next support at 2953; but 2800 is a distinct possibility in the medium-term if the market continues to slide.