Daily Markets Briefing: STI down 1%

Expect another pullback today.

According to OCBC, the pullback on Wall Street overnight could weigh further on the already battered local sentiment this morning, although further sharp losses are unlikely after the STI’s 1% fall yesterday, which also extended the index’s losing streak for the 7th session.

Here's more from OCBC:

Technically, the price action has formed a potential reversal signal, although the index may still have some room to fall, given that the daily RSI is still some distance away from the oversold region.

However, as long as the index can sustain above the key 2800 level, we should see a technical rebound emerging, potentially re-testing the initial 2850 hurdle.

But if it fails to do so, the index could slip further towards 2767 (100-DMA), where a break would not bode well for the medium-term picture at all.

Overall volume dipped 15% yesterday to 1.1b units traded, while average value/unit climbed 10% to S$1.06.