Daily Markets Briefing: STI down 1.2%

Expect a rebound today.

According to OCBC, the continued rebound on Wall Street overnight could provide a lift to the local bourse this morning; the Nikkei has rebounded some 2.9% in early trade.

Here's more from OCBC:

Although the STI did not come close to testing the key 2600 support yesterday, it did end off the intraday low, suggesting that the market may take 2600 as the near-term base for now.

As such, we could see the index staging a rebound to try and take out the next resistance at 2650 and may even make a test of the key 2700 hurdle,

However, should this resistance hold, we may see selling into strength resuming as the overall downtrend remains intact for now.

Below 2600, we peg the next support at 2521.