Daily Markets Briefing: STI down 1.5%

Brace for another pullback today.

According to OCBC, the STI ended down 1.5% Friday on profit-taking; and with the dismal showing on Wall Street last Friday night, we would continue to see the index easing further towards the key 2800 level.

Here's more from OCBC:

We note that today is the start of the 1-week school holiday and with market also shut due to Polling Day this Friday, overall market interest could be on the thin side.

Meanwhile, China will re-open after a 2-day break; any adverse movement there is also likely to influence the sentiment here; this adding to the already cautious mood over US interest rates.

And on the downside, we peg the next support at 2800; but note that the index could trigger a parabolic sell signal if it dips below 2820.

On the upside, 2900 is the initial resistance, ahead of the key 3000 level.